NPCI clarifies new UPI transaction levy on high-value payments

The National Payments Corporation of India (NPCI) has moved to clarify the mechanics of recently introduced charges on select UPI transactions, seeking to dispel confusion about which payments will be affected by the new levy.

Under the new framework, a flat fee of Rs 5 has been imposed on transactions valued above Rs 2,000 in specific categories. The clarification comes as various stakeholders, ranging from educational institutions to financial services providers, sought guidance on how the charges would impact their operations and customers.

The NPCI's intervention addresses concerns that the new levy could affect routine payments such as school fee deposits and stock brokerage transactions. By outlining which transaction types fall within the purview of the charge, the regulator has attempted to provide clarity to businesses and consumers navigating the modified fee structure.

The move reflects ongoing efforts by India's regulatory authorities to balance the growth of digital payment infrastructure with the need to maintain the system's accessibility across various economic segments. UPI has emerged as a critical payment rail for the Indian economy, processing millions of transactions daily across retail, institutional and financial services sectors.

Industry participants have been advised to review the detailed guidelines to ensure compliance with the revised fee structure and to communicate changes to their users accordingly.