NPCI delays merchant fee on UPI payments above ₹2,000 until after Diwali
publishers 16articles 16first reported 13 Oct, 08:03 UTCdeveloping since 13 Oct · 7 editions
The National Payments Corporation of India has postponed the introduction of a 0.4% Merchant Discount Rate on select person-to-merchant UPI payments above ₹2,000, delaying the measure from October 15 until after Diwali on November 8.
NPCI said the UPI and Services Steering Committee made the decision with the festive season in mind. A new implementation date will be announced separately.
The fee will be paid by merchants and capped at ₹300 per transaction. Person-to-person transfers, merchant payments of ₹2,000 or less, and merchants receiving less than ₹1 lakh a month through UPI will be exempt. High-value merchant payments account for about 4% of person-to-merchant UPI transactions by volume but nearly two-thirds by value.
Some public-service payments above ₹2,000, including rail tickets, fuel, agricultural inputs, utility bills, insurance premiums and taxes, are subject to a flat ₹5 fee. Capital-market transactions face a lower rate of 0.02%.
The government has advised banks to ensure merchants do not pass the charge to customers. Retailers and opposition parties have objected to the measure, warning that it could reduce merchant margins, increase consumer costs or encourage cash payments. Traders in Madhya Pradesh protested in September by covering UPI QR codes and asking customers to pay in cash.
HOW THIS STORY WAS MADE
Written from 3 articles, 3 with the publisher's own text; 3 independent newsrooms once syndicated copies count as one; this version written 6 h after the record first saw the story; the editor kept it as written.
- Publishers
- 16
- Source articles
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- Given to the writer
- 3, 3 with the article's own text
- Independent newsrooms
- 3
- This version written
- 6 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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