Business · Economy · 1 day ago
GTRI urges government to withdraw proposed UPI merchant fee
The Global Trade Research Initiative, an economic think tank in India, has urged the government to withdraw a proposed fee on some UPI payments.
The 0.4% charge would apply to payments from customers to merchants above ₹2,000 and is scheduled to begin on October 15.
Payments between individuals and certain person-to-merchant payments would remain free.
The government ended six years of zero fees for UPI merchant payments and announced the new charge last month.
GTRI says merchants might pass the cost on through higher prices or absorb it through lower earnings.
It warns that this could reduce household spending and put pressure on small businesses.
GTRI also says the fee could make cards more competitive with UPI and has called for an independent audit of UPI’s operating costs.
The government has not been reported as changing the plan.
GTRI urged the government to withdraw a proposed 0.4% fee on some UPI merchant transactions.
The charge would apply to person-to-merchant transactions above ₹2,000 and is scheduled to take effect on October 15.
GTRI warned the fee could raise prices, squeeze small-business earnings and weaken household demand.
The proposed fee would be capped at ₹300 on transactions worth ₹75,000 or more, while person-to-person and person-to-person-and-merchant transactions would remain free.
- Who
- The Global Trade Research Initiative (GTRI), led by founder Ajay Srivastava, called for the fee to be withdrawn.
- What
- GTRI urged the government to withdraw a proposed 0.4% fee on some UPI merchant transactions.
- When
- The fee is scheduled to take effect on October 15. GTRI made its call before that date.
- Where
- India.
- Why
- GTRI said the fee could raise prices, squeeze small businesses and weaken household demand. It also said the charge could reduce UPI’s price advantage over cards.
This story does not have two clearly opposing sides.
The government should withdraw the proposed UPI charges scheduled to take effect on October 15 and keep UPI free for merchants and consumers.
The Centre said a 0.4% fee would be imposed on person-to-merchant UPI transactions above ₹2,000.
GTRI urged the government to withdraw the proposed fee.
The proposed UPI charges are scheduled to take effect.
- Proposed rate
- 0.4%
- Transaction threshold
- Above ₹2,000
- Maximum fee
- ₹300 on transactions worth ₹75,000 or more
- Free transactions
- Person-to-person and person-to-person-and-merchant transactions
- Scheduled start
- October 15
Sources
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