Business · India Bureau
UPI MDR rollout faces potential delay amid trader concerns
Traders' associations have urged the government to defer the October 15 rollout of UPI Mandate for Domestic Recurring payments, seeking a post-festive season launch instead. The request comes as businesses prepare for the year-end shopping period.
LSN India ·
Traders' bodies across India have formally requested a postponement of the Unified Payments Interface Mandate for Domestic Recurring (UPI MDR) rollout scheduled for October 15, citing concerns about implementation during the festive season. The associations have suggested the launch be deferred until after the Diwali period or moved to early 2025 to allow adequate preparation time.
The UPI MDR framework aims to standardize recurring payment processes for subscriptions and regular transactions through digital channels. While the initiative is designed to streamline digital payments, traders have raised concerns about the operational challenges and merchant adoption required within a compressed timeline during peak business season.
Industry representatives have emphasized that the festive quarter represents critical sales periods for retail and e-commerce sectors, with businesses focused on managing increased transaction volumes. A rollout during this period could strain resources allocated to system upgrades and merchant training, they contend.
The plea from traders' associations reflects broader concerns within the merchant community about coordinating technology implementation alongside seasonal business demands. Government authorities have not yet announced any formal decision regarding the proposed deferment, with regulators likely to evaluate feedback from stakeholders before finalizing the implementation timeline.
The delay request underscores the need to balance digital payment infrastructure modernization with practical business considerations, a recurring theme as India's payment ecosystem continues its rapid digital transformation.