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Government Defers 0.4% MDR on UPI Transactions Over Rs 2,000 Until After Diwali
The Indian government has postponed the implementation of a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000 until after Diwali. The new date for the rollout has yet to be announced.
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What Happened?
The Indian government has postponed the implementation of a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000 until after Diwali. The new date for the rollout has yet to be announced.
AI Quick Summary
The Indian government has postponed the 0.4% MDR on UPI transactions over Rs 2,000 until after Diwali.
Key points
- The government deferred the 0.4% MDR on UPI transactions over Rs 2,000.
- The new implementation date will be announced after Diwali.
- The original deadline was set for October 15.
- The delay aims to avoid disruption during the festive season.
- MDR is a fee merchants pay for accepting digital payments.
Key insights
- The delay may provide merchants and payment companies more time to adjust their systems.
- The festive season typically sees increased consumer spending, making the timing of this decision significant.
- Investors viewed the MDR as a potential revenue source for payment companies.
Why it matters
This decision could help maintain smooth retail payment operations during the festive season.
Entities
National Payments Corporation of India· OrganizationReserve Bank of India· OrganizationIndian Banks’ Association· OrganizationDiwali· Event
Source
Times of India
