Politics · India Bureau
Government to monitor UPI charges implementation from October 15
Indian authorities are preparing to oversee merchant compliance with new UPI transaction charges to prevent costs being passed to consumers. The monitoring framework will take effect from October 15.
LSN India ·
India's government is set to implement oversight mechanisms to ensure that new charges on Unified Payments Interface (UPI) transactions do not burden end consumers when the levies come into effect on October 15.
The monitoring initiative will focus on merchant behaviour across the digital payment ecosystem to verify compliance with guidelines stipulating that charges cannot be transferred to consumers making UPI payments.
Official sources indicated that various departments will coordinate surveillance of merchant practices across different sectors and transaction volumes to detect any attempts to circumvent the rules. This includes monitoring both online and offline merchants who accept UPI payments.
The move reflects government commitment to maintaining the accessibility and affordability of UPI, which has become India's dominant digital payment method. The new charges, aimed at sustaining the UPI infrastructure, are expected to be absorbed by banks and payment service providers rather than passed to consumers.
Authorities have emphasized that merchants found violating guidelines by directly or indirectly charging consumers for UPI transactions will face appropriate regulatory action.