Requests seeking a deferment of the rollout from October 15 to January 2027 are being considered, sources said. The requests have been made to the National Payments Corporation of India (NPCI) and the Finance Ministry.
Traders and industry associations have raised concerns that the introduction of MDR during the festive sales period could increase transaction costs for businesses. Merchant bodies have also flagged the potential impact on small retailers and micro, small and medium enterprises (MSMEs).
Industry groups had earlier sought changes including a deferment of the rollout, a higher exemption threshold and a phased implementation.
The issue was recently discussed by the UPI Steering Committee, with industry concerns forming part of the discussions, sources said. NPCI is expected to take a call on the matter over the next few days, while discussions with the Finance Ministry are ongoing.
The proposed MDR was scheduled to come into effect from October 15.
Under the proposed structure, a 0.4% MDR would apply to person-to-merchant (P2M) UPI transactions above ₹2,000. The MDR would be capped at ₹300 for transactions of ₹75,000 and above, while a flat ₹5 rate would apply to select categories.CNBC-TV18 has reached out to NPCI for a response.