India, Oct. 14 -- The National Payments Corporation of India (NPCI), which operates India's retail payments and settlement systems, on Tuesday deferred the implementation of a 0.4% merchant discount rate (MDR) on select UPI transactions above Rs.2,000, just two days before the scheduled rollout.

The deferment is temporary, and a fresh implementation date will be announced after Diwali.

"The UPI and Services Steering Committee today decided that, keeping in mind the festive season, the Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions shall be implemented immediately post-Diwali, on a date to be notified separately," Mumbai-based NPCI said in a statement.

A circular issued by NPCI last month had set an MDR...