LatestCorporate Compliance 13 October 2026
NPCI to Impose Merchant Discount Rate on Select UPI Payments
The National Payments Corporation of India (NPCI) will start charging a merchant discount rate (MDR) on specific person‑to‑merchant UPI transactions after Diwali, aiming to offset network costs. Simultaneously, the finance ministry has locked in a 7.1% interest rate for the special deposit scheme covering non‑government provident fund assets from October to December 2026.
The National Payments Corporation of India (NPCI) announced that, starting after Diwali, a merchant discount rate (MDR) will be applied to select person‑to‑merchant UPI payments. The move is intended to help cover the rising costs of operating the UPI network.
- MDR will affect transactions where merchants receive funds directly via UPI.
- Rates and eligible transaction categories will be detailed in a forthcoming NPCI circular.
- The government simultaneously set a 7.1% interest rate for the special deposit scheme that applies to non‑government PF funds from Oct‑Dec 2026.
For full details, see the original article here.
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