Spasht.
UPI merchant fee row

NPCI defers UPI merchant fee until after Diwali; Congress asks if a full rollback is next

13 Oct 2026 · 5 outlets · 1 min read

AI illustration
In 30 seconds
  1. The 15 October start is off; NPCI will announce a new date after Diwali.
  2. The Supreme Court has asked NPCI, the Centre and the RBI to explain the fee by late October.
  3. Traders welcomed the delay; Congress repeated its demand for a full rollback.

NPCI's UPI and Services Steering Committee decided on 13 October 2026, 'keeping in mind the festive season', that the fee would start 'immediately post Diwali' on a date to be notified, instead of 15 October. Government sources told The Hindu the decision was made in the Prime Minister's Office after appeals from traders. CAIT's Praveen Khandelwal thanked Modi and Sitharaman. Congress's Jairam Ramesh said the fee was itself a 'U-turn' after earlier denials and asked whether 'a U-turn on the U-turn' was coming.

What it means for India

Shops pay no UPI fee through the festive season, when spending and bill sizes usually rise. The fee is delayed, not cancelled.

Checked

Claim by claim

?Unverified

The finance minister denied any plans to impose MDR on UPI on 6 August 2026 and again four days later in Parliament.

Said by Jairam Ramesh, Congress

In an earlier post, Ramesh himself quoted her as saying on 6 August that 'no decision has been taken on MDR' and on 10 August that 'no MDR framework has yet been finalised'. Those say no decision had been made, not that there were no plans. We did not find the original statements.

News18 (PTI) · Indian Economic Observer (ANI)
?Unverified

The decision to delay the fee was made in the Prime Minister's Office.

Said by Unnamed government sources

The Hindu attributes this to government sources. NPCI's statement says only that its steering committee decided.

The Hindu
In their own words

What each side says

Traders (CAIT)

CAIT called the delay 'timely and pragmatic' and said extra costs 'could have placed an avoidable burden on merchants operating on thin margins'.

The Hindu
Congress

Jairam Ramesh said 'the widespread demand has been to rollback the MDR on UPI' and asked, 'Is the ground being prepared for a U-turn on the U-turn?'

News18 (PTI)
Honest gaps

Not yet known

  • ?The new start date, and whether the terms will change.
Who reported this

Sources

Left-leaning · 1Centre · 3Right-leaning · 1

5 outlets across the spectrum. Leanings are a rough guide to who reported it, not a verdict on accuracy.

  1. NPCIUPI MDR on Select Merchant Transactions Shall be Implemented Post Diwali
  2. The HinduNPCI pushes back UPI MDR rollout to 'immediately after Diwali'
  3. News18 (PTI)'U-turn on the U-turn': Congress questions govts deferment of UPI MDR
  4. Indian Economic Observer (ANI)"U-turn on U-turn?": Jairam Ramesh questions deferment of UPI MDR charges until after Diwali
  5. CNBC-TV18UPI MDR rollout deferred to post-Diwali, NPCI says; new date to be announced separately

Spasht writes original summaries. Follow the links to read each outlet's own report. Revision 1.