NPCI announced the postponement after a wave of industry objections, citing the need to avoid disrupting the high‑volume Navratri sales season that would normally start on 15 October. The earlier plan would have hit merchants mid‑campaign, forcing sudden changes to billing software and checkout protocols.
Retailers welcomed the decision, with Santosh Katariya, president of the Clothing Manufacturers Association of India (CMAI), saying the deferment grants the trade a breathing space to re‑configure systems and train staff. He warned that the 0.4% fee on UPI transactions above Rs 2,000—capped at Rs 300 for amounts over Rs 75,000—could dent margins during the most critical sales window for apparel.
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Trade bodies urged the government to rethink the Rs 2,000 threshold, arguing that a large portion of apparel retail value—especially during weddings and festivals—exceeds that mark. The call comes amid concerns that the margin impact will be amplified by rising inflation.
Kumar Rajagopalan, executive director and CEO of the Retailers Association of India (RAI), argued for a fixed fee instead of a percentage, noting that the current model adds unpredictability to already squeezed profit margins.
NPCI will issue a separate notice with the new launch date, while the government considers adjusting the MDR threshold. Retailers are preparing for the change by reviewing billing systems and scheduling staff training sessions before the post‑Diwali rollout.