New Delhi, Oct. 13 -- The Merchant Discount Rate (MDR) on select person-to-merchant (P2M) Unified Payments Interface (UPI) transactions will be implemented after Diwali 2026, according to an announcement by the National Payments Corporation of India (NPCI) on October 13.

The decision comes amid the ongoing festive season, when digital payments are widely used for shopping, dining and other everyday purchases.

The UPI and Services Steering Committee discussed the matter and decided to defer the implementation until immediately after Diwali. The exact implementation date will be announced separately.

The decision was taken after considering the festive season, allowing merchants and customers to continue their usual payment activities du...