UPI merchant charges postponed until after Diwali: what to do now

If you take UPI payments at a shop counter, an online store, a clinic desk or a fee window, the date has moved. The fee on some UPI merchant payments was due to start on 15 October 2026. It has now been put off until after Diwali. No new date has been given yet.

What changed, and when

On 13 October 2026, NPCI, which runs UPI, said its UPI and Services Steering Committee had decided to hold back the Merchant Discount Rate on select person-to-merchant payments, keeping the festive season in mind. MDR is the small fee a merchant pays its bank for accepting a digital payment. NPCI said the fee will start immediately after Diwali, on a date to be notified separately.

So for now, nothing is being deducted. The plan has been delayed, not dropped. When we wrote about these charges on 6 October, they were due from 15 October. That date no longer holds.

What the plan says

NPCI's statement only moves the date. As reported, the plan in its 15 September circular is:

• 0.4% on merchant payments above ₹2,000, paid by the merchant, capped at ₹300 for payments of ₹75,000 or more.
• A flat ₹5 per payment above ₹2,000 for railways, telecom, fuel and insurance.
• Payments between two people stay free, whatever the amount.
• Small merchants who receive up to ₹1 lakh a month through a UPI QR code, under the category meant for very small sellers (P2PM), stay at zero MDR.

In September the Ministry of Finance said about 96% of merchant payments are untouched, and that this is not a tax. If NPCI changes any of these rates when it gives the new date, we will write about it.

What to do in the extra weeks

• Do not change your prices yet. If you put up a sign or a checkout line about UPI fees for 15 October, take it down.
• Work out your own number. Take three months of UPI collections and add up only the payments above ₹2,000. About 0.4% of that total is roughly what the fee would cost you each month. A shop with mostly small bills may see almost nothing. A hospital, a coaching centre collecting term fees or a machinery dealer will see more.
• Ask your bank in writing which category your account falls in, and ask them to tell you as soon as the new date is fixed.
• Get your books ready now, not in the rush after the festival. Once deductions start, the amount credited to your bank will not match the bill. Decide today where that difference will be recorded.
• Watch for NPCI's announcement in the days after Diwali. We do not yet know how much notice there will be.

How we can help

When the fee starts, the real work is in the accounts. Kanakku reads your bank statement, matches each credit to the right invoice and keeps the fee as its own entry, so your reports still add up. If you sell on WhatsApp or Instagram, Shoppyti gives buyers a proper store and order link, so you can see your own payment mix instead of guessing it. If you would like help working out your exposure before the new date, talk to us.