India, Oct. 8 -- The introduction of a merchant discount rate (MDR) on select UPI transactions may be deferred from October 15 to January 1, 2027, amid pushback from retail traders' associations.

A proposal to postpone the rollout is under consideration, with a final decision expected in the coming days, Business Standard reported. A deferment would keep eligible merchant payments free of MDR through the festive season.

Members of the UPI and Services Steering Committee, headed by the National Payments Corporation of India (NPCI), met yesterday to discuss the rollout and clarify aspects of the framework, the report said.

The committee is also considering exempting businesses with annual turnover of up to Rs.40 Lakh, the report added. T...