Archive · 11 Oct 2026
GTRI Urges Government to Withdraw Proposed UPI Merchant Charges
UPI lets people pay businesses digitally.
The government plans to charge a fee on some large payments to businesses starting October 15.
The Global Trade Research Initiative says the government should cancel that fee and keep UPI free.
It worries that businesses might pass the cost on to customers.
If they cannot raise prices, small businesses could earn less instead.
GTRI says banks, payment apps and the government also benefit from UPI.
It wants an independent audit to find out how much the system costs to run.
The group says keeping UPI free could help it remain cheaper than card payments.
The Global Trade Research Initiative (GTRI) urged the Centre to withdraw a proposed 0.4% merchant discount rate on some UPI transactions.
The fee is scheduled to apply from October 15 to person-to-merchant transactions above ₹2,000; charges are capped at ₹300 for transactions of ₹75,000 and above.
GTRI says merchant fees could raise prices, reduce small-business earnings and weaken household demand.
The think tank argues banks, payment apps and the government benefit from UPI, and says an independent audit should establish its operating costs.
GTRI warns that charges could reduce UPI’s price advantage over cards and benefit competing card networks.
- Who
- The Global Trade Research Initiative and its founder, Ajay Srivastava, urged the Centre to withdraw the proposed UPI charges.
- What
- GTRI called for keeping UPI free for merchants and consumers and proposed an independent audit of its running costs.
- When
- The proposed charges are scheduled to take effect on October 15.
- Where
- India.
- Why
- GTRI says the charges could raise prices, squeeze small-business earnings and household demand, and reduce UPI’s price advantage over cards.
GTRI’s position
Policy context described
Merchant charges
GTRI’s position
GTRI says the proposed fee should be withdrawn and UPI kept free for merchants and consumers.
Policy context described
The Centre ended six years of zero-MDR on UPI payments and announced a 0.4% fee on select P2M transactions above ₹2,000, with a cap for high-value transactions.
Who should fund UPI
GTRI’s position
GTRI says banks, payment apps and the government benefit from UPI and that these institutions could share its running costs; it calls for an independent audit.
Policy context described
The article reports the proposed merchant fee but does not provide a government response explaining its rationale.
- Proposed rate
- 0.4% merchant discount rate on select person-to-merchant UPI transactions
- Transaction threshold
- Transactions above ₹2,000
- Maximum charge
- Capped at ₹300 on transactions of ₹75,000 and above
- Effective date
- October 15
- Transactions remaining free
- Person-to-person and person-to-person-to-merchant transactions
- GTRI recommendation
- Withdraw the proposed charges and independently audit UPI’s actual running costs
- UPI reach cited by GTRI
- Annual UPI payment value exceeded 91% of India’s GDP last year