The National Payments Corporation of India (NPCI) has postponed the implementation of the Merchant Discount Rate (MDR) on certain Person-to-Merchant (P2M) Unified Payments Interface (UPI) transactions until after Diwali, citing the festive season. The revised implementation date will be announced separately.

In a formal announcement on Tuesday, October 13, NPCI said the UPI and Services Steering Committee had decided to defer the implementation to accommodate the festive period. The changes were initially scheduled to take effect from October 15.

“Today, the UPI and Services Steering Committee announced that, considering the festive season, the Merchant Discount Rate (MDR) for certain Person-to-Merchant (P2M) UPI transactions will be put into effect right after Diwali on a date that will be communicated later,” NPCI said.

The postponement follows an earlier report by CNBC-TV18 indicating that the planned implementation could be delayed until after Diwali. NPCI’s announcement confirmed the delay, although the specific date for introducing the MDR remains undisclosed.

The development also influenced the share prices of payment companies Paytm, Pine Labs and MobiKwik during Tuesday’s trading session. Their stocks declined by as much as 7% following the report suggesting that the implementation scheduled for October 15 could be postponed.

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Paytm shares fell as much as 7%, while Pine Labs and MobiKwik also recorded declines during the session. However, the stocks recovered after NPCI officially confirmed the revised timeline.

Paytm shares rebounded nearly 6% from the day’s low, while Pine Labs and MobiKwik reversed their losses and moved into positive territory, according to market updates.

The postponement provides additional time for merchants and payment industry participants to prepare for the proposed MDR implementation. However, the impact on individual merchants and payment service providers will depend on the final implementation date and the transactions covered under the revised framework.

NPCI has not yet provided further details on the revised schedule. The industry will await its subsequent communication to determine when the MDR provisions for the specified P2M UPI transactions will come into effect.