NPCI Imposes 0.4% Fee on UPI Transactions Over Rs 2,000
· Business · Indian Express, The Hindu
The National Payments Corporation of India has announced a 0.4 per cent fee on person-to-merchant UPI transactions exceeding Rs 2,000, effective October 15. This merchant discount rate is capped at Rs 300 per transaction and applies to entities receiving over Rs 1 lakh per month. The Union Ministry of Finance has advised merchants, including e-commerce sites and local shops, not to pass this cost onto consumers. A flat fee of Rs 5 will apply to specific categories such as fuel, rail tickets, insurance premiums, and utility bills. This policy shift follows recommendations from the Standing Committee on Finance to improve the financial sustainability of the UPI ecosystem.
Why it matters
The new fee structure ensures sustainable revenue for payment service providers while protecting individual consumers from direct transaction costs. It specifically impacts high-volume merchants and utility service providers who process large-scale digital payments.
Read the original report — Indian Express
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