Archive · 16 Sep 2026
Paytm CEO Supports Charges on Large UPI Payments
UPI is a digital payment system used to send money and pay businesses.
Until now, many UPI payments had no charges.
A new rule adds a 0.4% charge for some merchant payments above ₹2,000.
Paytm CEO Vijay Shekhar Sharma supports the change.
He says larger payments can help pay for the system while small shops continue using UPI for free.
Payments between two people will still be free, no matter how large they are.
Merchant payments up to ₹2,000 will also remain free.
The government says about 96% of merchant transactions will not be affected.
Paytm CEO Vijay Shekhar Sharma backed charges on higher-value UPI merchant payments.
NPCI introduced a 0.4% merchant discount rate on person-to-merchant UPI transactions above ₹2,000 from October 15.
Sharma said the policy could make UPI financially sustainable while keeping payments free for small merchants.
The Finance Ministry said person-to-person payments and merchant payments up to ₹2,000 will remain free.
The ministry said about 96% of person-to-merchant transactions will remain unaffected, while the RBI said the move would support UPI’s growth.
- Who
- Paytm CEO Vijay Shekhar Sharma, the National Payments Corporation of India, the Finance Ministry and the Reserve Bank of India.
- What
- A 0.4% merchant discount rate was introduced for specified person-to-merchant UPI transactions above ₹2,000.
- When
- The charge was introduced from October 15; the articles do not specify the year.
- Where
- Across India’s UPI digital payments ecosystem.
- Why
- To create a more sustainable financial model for UPI while protecting small users and merchants from charges.
- Charge
- 0.4% merchant discount rate
- Transaction threshold
- Person-to-merchant UPI payments above ₹2,000
- Effective date
- October 15
- Free person-to-person payments
- All person-to-person UPI transactions remain free regardless of amount
- Free merchant payments
- Merchant payments up to ₹2,000 and transactions covered by the zero-MDR framework remain free
- Estimated impact
- Approximately 96% of person-to-merchant transactions will remain unaffected
- Nature of MDR
- The Finance Ministry said MDR is neither a tax nor a fee collected by the government or NPCI