The introduction of a Merchant Discount Rate on select person-to-merchant Unified Payments Interface transactions is scheduled to take place after the Diwali festive period on a date that will be formally announced. By deferring the rollout, authorities aim to prevent any disruption to consumer sales during major festive celebrations spanning Navratri and Diwali. The upcoming fee, established at 0.4 percent for specific merchant classifications, will not affect standard person-to-person transfers.
Fintech operators and business owners had previously requested guidance from the National Payments Corporation of India concerning which transaction types would fall under the policy and how financial sustainability would be managed. The implementation of this charge is intended to bolster payment ecosystem infrastructure and help offset operational expenses incurred by fintech providers in maintaining robust security protocols and fraud prevention measures. Officials have maintained that merchant expenses should be regulated to ensure the continued viability of digital payment networks.