Business · Economy · 5 hrs ago
NPCI delays UPI merchant fees until after Diwali
NPCI has postponed UPI merchant fees that were due to begin on October 15.
The decision applies in India and was made by a UPI and Services Steering Committee led by NPCI.
The fee is 0.4% on merchant payments above 2,000 rupees made by individuals.
Payments between individuals and merchant payments of 2,000 rupees or less are not covered, and ordinary users can continue using UPI for free.
Retail and wholesale traders opposed the fees, saying they could raise costs during the festival season.
The fees will start after Diwali, and NPCI says it will announce the exact date later.
NPCI has postponed the introduction of merchant discount rate (MDR) charges on UPI transactions until after Diwali.
The charges had been due to begin on October 15, but NPCI has not announced a new start date.
The delay followed requests from wholesale and retail merchants, who said the fees would raise their costs during the festival season.
The planned 0.4% charge applies to merchant payments by individuals above ₹2,000.
UPI transactions by ordinary consumers will remain free, and person-to-person transfers and merchant payments of ₹2,000 or less are excluded.
- Who
- The National Payments Corporation of India (NPCI) announced the delay.
- What
- It postponed the introduction of MDR charges on UPI transactions until after Diwali.
- When
- The charges were due to begin on October 15. A new start date has not been announced.
- Where
- India.
- Why
- Merchants opposed the charges and raised concerns that they would increase costs during the festival season.
This story does not have two clearly opposing sides.
NPCI set a 0.4% MDR charge for individual payments to merchants above ₹2,000.
The MDR charges had been scheduled to begin.
NPCI’s UPI and Services Steering Committee decided to postpone the charges until after Diwali.
- Original start date
- October 15
- New start period
- After Diwali
- Charge rate
- 0.4%
- Payment threshold
- Above ₹2,000 for individual payments to merchants
- Exempt transactions
- Person-to-person transfers and merchant payments of ₹2,000 or less
Sources
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