NPCI imposes merchant UPI charges over ₹2,000 P2P free
Heads up if you use UPI for shopping: NPCI is rolling out new charges on merchant/P2M UPI payments above ₹2,000 starting 15 October 2026.
These apply only when you pay merchants (like in stores or online), while sending money to friends or family stays totally free.
Merchants face capped 0.4% fee
For big purchases, merchants will pay a fee capped at 0.4% of the amount (with a maximum of ₹300 for transactions of ₹75,000 and above).
Payments under ₹2,000 are still free for everyone, and small merchants operating under P2pm framework receiving up to ₹100,000 per month through UPI QR directly into their accounts don't have to worry about these fees.
NPCI says fees support small businesses
NPCI says the goal is to keep digital payments easy for users while helping small businesses upgrade their tech, especially in rural areas, so everyone can benefit from smoother UPI experiences going forward.