The government is considering delaying the rollout of merchant discount rate charges on UPI transactions. The charges were expected to begin on October 15, according to reports.

MDR is the fee merchants pay on digital transactions. UPI has been free for users and merchants so far. That zero-fee model helped UPI become India’s most popular payment method.

Introducing MDR could change the economics of digital payments. Small merchants worry that fees will push them back to cash. Payment companies, however, argue that some revenue is needed to sustain the system.

The government is weighing both sides. A delay would give more time to study the impact on small businesses and consumers. No final decision has been announced.

UPI processed record transactions this year. Any change to its pricing will affect millions of daily users. The next few days will show whether the October 15 date holds. Experts say the decision will shape the future of digital payments in the country. For now, users can continue paying without extra charges. The industry awaits clarity in the coming days.