UPI Transaction Charges to Apply on Payments Above Rs 2,000 Next Month

Merchant discount rate charges on Unified Payments Interface transactions will come into effect from the 15th of next month, the NPCI CEO confirmed, addressing concerns about the implementation of the new fee structure. The charges will apply exclusively to UPI payments valued above Rs 2,000, marking a significant shift in India's digital payments landscape. The move aims to generate revenue for payment service providers while maintaining the affordability of smaller transactions that form the bulk of UPI usage. The NPCI leadership has provided comprehensive details on the implementation timeline and scope of the charges, though the exact rate structure remains subject to regulatory guidelines. Industry observers note that the introduction of merchant discount rates on UPI transactions represents a departure from the zero-fee model that has underpinned the platform's rapid adoption across India since its launch.