NPCI to add 0.4% UPI fee to fund merchant digitisation
Business
Starting October 15, the National Payments Corporation of India (NPCI) will add a 0.4% fee on certain UPI payments over ₹2,000.
The goal? To use part of these fees to help small-town merchants get online and boost digital payment infrastructure, so more local shops can go cashless without extra costs.
Most UPI merchant payments unaffected
If you're paying up to ₹2,000 or shopping at small merchants earning up to ₹1 lakh a month via UPI QR codes, you won't see any new fees.
High-value transactions (₹75,000 and above) have the fee capped at ₹300 maximum.
The finance ministry says about 96% of person-to-merchant payments won't be affected at all, so for most people and everyday purchases, nothing really changes!