O9One 97 Communications543396Regulatory environment change

MDR on select UPI P2M transactions to be implemented after Diwali

NPCI has decided that MDR on select UPI P2M transactions will be implemented after Diwali, on a date to be notified separately.

By ScoutQuest · Tue 13 Oct 2026, 2:30 PM IST · 1 min read

NPCI Press Release Date

October 13, 2026

Circular Reference

NPCI/UPI/OC-No.237/2026-27 dated September 15, 2026

Implementation Timing

after Diwali, on a date to be notified separately

MDR rollout on select UPI P2M transactions pushed past Diwali

• NPCI, through its press release dated October 13, 2026, has decided that MDR on select P2M UPI transactions will be implemented after Diwali, on a date to be notified separately.
• The stated reason for the change in timing is the festive season.
• This is an update to the NPCI circular no. NPCI/UPI/OC-No.237/2026-27 dated September 15, 2026 on the levy of Merchant Discount Rate on select Person-to-Merchant UPI transactions.
• The company had earlier made a disclosure on September 15, 2026 on the same subject.
• The company has said this disclosure will also be hosted on its investor relations website, https://ir.paytm.com/.

What the terms mean

• MDR stands for Merchant Discount Rate. It is a fee applied on digital payment transactions, effectively the cost a merchant bears for accepting a payment.
• P2M stands for Person-to-Merchant, meaning a customer paying a merchant or business, rather than sending money to another individual.
• This update relates to MDR on select P2M UPI transactions.

What has changed

• The start of the MDR levy on the selected P2M UPI transactions is now pushed beyond Diwali.
• The actual implementation date is to be notified separately.
• Until that date is notified, the position stated in the September 15, 2026 disclosure continues to be the reference point.

What follows next

• The specific date on which MDR on select P2M UPI transactions begins is to be notified separately, which is the next piece of information that would complete this update.

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