Archive · 17 Sep 2026
Chandni Chowk Traders Oppose Upcoming UPI Charges Amid Wedding Season
Some shops in Chandni Chowk sell wedding clothes.
Many customers now pay using UPI instead of cash.
A new rule says payments above Rs 2,000 will have a 0.4% fee from October 15.
The shopkeepers worry they will have to pay this fee themselves.
They say their other costs, including taxes and inflation, are already rising.
Asking customers to use cash may not work because many people do not carry it.
There are also only a few usable ATMs nearby, and they often have long queues.
Traders hope the government and their associations can agree on changes before the rule begins.
UPI transactions above Rs 2,000 will attract a 0.4% fee from October 15.
Chandni Chowk wedding-store owners say the Merchant Discount Rate will increase business costs.
Traders argue customers now rely on UPI and are unlikely to return to cash payments.
Store managers cite limited working ATMs and long queues in Chandni Chowk.
The Chandni Chowk traders’ association hopes discussions may lead to changes before implementation.
- Who
- Chandni Chowk wedding-garment traders, the National Payments Corporation of India, and the government.
- What
- A 0.4% fee is being introduced on UPI transactions above Rs 2,000, prompting complaints from traders.
- When
- The fee is scheduled to take effect on October 15; traders have about one month to seek changes.
- Where
- Chandni Chowk in Old Delhi.
- Why
- Traders say the fee will add to their costs, while returning customers to cash is impractical because few people carry cash and nearby ATMs are limited.
Trader concerns
Policy and payment-system position
Cost of UPI payments
Trader concerns
Traders say the 0.4% fee will add substantially to their expenses, especially because most of their products cost more than Rs 2,000 and customers commonly use UPI.
Policy and payment-system position
The announced policy establishes a 0.4% charge for UPI transactions above Rs 2,000, but the articles do not provide a detailed government justification for the fee.
Returning to cash
Trader concerns
Store managers say asking customers to switch back to cash is impractical because people rarely carry cash and nearby ATMs are limited or crowded.
Policy and payment-system position
The articles provide no opposing trader or government evidence that a return to cash would be practical; they only report the proposed UPI charge.
Timing of the change
Trader concerns
The Chandni Chowk traders’ association says introducing the fee during the current business period is unfortunate and hopes the government will make changes before implementation.
Policy and payment-system position
The articles do not report a government response to the traders’ request to delay or revise the measure.
- UPI fee
- 0.4% on transactions above Rs 2,000
- Effective date
- October 15
- Announcing body
- National Payments Corporation of India
- Affected businesses
- Wedding garment and clothing stores in Chandni Chowk
- Main concern
- Traders may have to absorb the Merchant Discount Rate as an additional cost
- Cash-payment obstacle
- Customers often do not carry cash; nearby ATMs are few and may have long queues
- Traders’ request
- More time and discussions with the government before implementation