Archive · 17 Sep 2026
UPI Fee Divides Delhi Traders Over Thin Margins
A new fee will apply when people use UPI to pay more than Rs 2,000.
The fee starts on October 15.
Shops, rather than customers directly, will pay it.
The fee is 0.4% of the payment.
For a Rs 10,000 bill, the shop would pay Rs 40.
Some larger traders think this is a small cost.
Smaller traders with low profits worry that many such fees could add up.
Delhi traders are divided over whether to absorb the cost or recover it from customers.
The National Payments Corporation of India announced a 0.4% fee on UPI transactions above Rs 2,000.
The fee will take effect on October 15 and will be paid by merchants.
A Rs 10,000 UPI payment would cost the merchant Rs 40 in fees.
Some Delhi traders say the charge is too small to significantly affect their businesses.
Traders operating on thin margins worry that the deductions could accumulate over time.
- Who
- The National Payments Corporation of India announced the fee, affecting merchants and Delhi traders; Atul Bhargava commented on its impact.
- What
- A 0.4% fee will apply to UPI transactions above Rs 2,000, with merchants paying the charge.
- When
- The announcement was made on Tuesday, and the fee will begin on October 15.
- Where
- The issue is affecting traders in Delhi, including shops in Sadar Bazaar.
- Why
- The fee is being imposed on qualifying UPI transactions, creating concern among traders with thin profit margins.
Concerned Thin-Margin Traders
Traders Seeing Limited Impact
Effect on business
Concerned Thin-Margin Traders
Smaller shopkeepers operating on thin margins say even a small deduction could add up and affect them.
Traders Seeing Limited Impact
Some traders say the 0.4% charge is too small to make much difference to their businesses.
Who is most affected
Concerned Thin-Margin Traders
Traders with low profit margins are more worried about the cumulative cost of the fee.
Traders Seeing Limited Impact
New Delhi Traders Association president Atul Bhargava said the impact would be limited for bigger traders.
Recovering the cost
Concerned Thin-Margin Traders
Some traders may try to recover the fee from customers when payments exceed Rs 2,000.
Traders Seeing Limited Impact
Other traders may absorb the charge as a business cost.
- Fee rate
- 0.4% of qualifying UPI transactions
- Transaction threshold
- More than Rs 2,000
- Effective date
- October 15
- Payer
- The merchant, not the customer directly
- Example cost
- A Rs 10,000 payment would incur a Rs 40 merchant fee
- Trader response
- Some may absorb the fee, while others may try to recover it from customers