Business · Economy · 3 hrs ago
Planned UPI fees on some large payments delayed until after Diwali
NPCI has delayed a planned fee on some UPI payments until after Diwali.
The proposal would charge merchants 0.4% on selected transactions above ₹2,000, with the fee due to start on October 15.
Merchants would pay the fee to banks, but small shops could pass the cost on to customers through higher prices.
The proposal drew opposition from businesses and consumers, and some people began discussing a return to cash payments.
Business groups and fintech firms pressed the government to act, while unclear rules for some types of payments added to confusion.
The fee’s delay means it will not start before the festival period ends.
The reports do not say whether it will be introduced afterward.
India’s National Payments Corporation of India has postponed planned merchant discount rate fees on some UPI transactions until after Diwali.
The proposed 0.4% fee would apply to selected merchant transactions above ₹2,000.
The plan had been set to start on October 15.
Telugu360 reported that business groups, consumers and fintech companies opposed the proposal.
The article said uncertainty about which types of payments would be charged also contributed to confusion.
- Who
- The National Payments Corporation of India (NPCI) proposed the fees. Business groups, consumers and fintech companies opposed them.
- What
- Planned merchant discount rate fees on some large UPI transactions were delayed until after Diwali.
- When
- The fees were due to start on October 15, 2026. The postponement was announced before then.
- Where
- India.
- Why
- Telugu360 said the proposal faced opposition and that uncertainty over which payments would be charged caused confusion.
NPCI
Business groups, consumers and fintech companies
Fees
NPCI
NPCI proposed a 0.4% fee on selected merchant UPI transactions above ₹2,000.
Business groups, consumers and fintech companies
Opponents objected to the charges, with businesses and consumers concerned about their effects.
Impact
NPCI
NPCI’s proposed fee was to be paid by merchants to banks.
Business groups, consumers and fintech companies
Telugu360 said small businesses could pass the cost on to consumers through higher prices.
NPCI planned to introduce a 0.4% fee on selected merchant UPI transactions above ₹2,000.
Following opposition and reported uncertainty over which payments would be charged, the plan was postponed until after Diwali.
- Fee rate
- 0.4%
- Transaction threshold
- Above ₹2,000
- Planned start
- October 15, 2026
- Postponement
- Until after Diwali
- Fee example
- ₹8 on a ₹2,000 transaction and ₹40 on a ₹10,000 transaction
Sources
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