India May Delay UPI Payment Fee Rollout by Few Months

India is considering delaying the introduction of a 0.4% fee on large UPI merchant payments by a few months, according to a regulatory official and an industry executive familiar with the discussions. The fee, which applies to transactions above ₹2,000, was scheduled to take effect from October 15.

The proposed charge ended more than six years of zero-cost UPI payments and has faced opposition from retailers and other industry players. A delay could give payment companies more time to upgrade their systems and help retailers avoid additional costs during the busy festive shopping season.

The National Payments Corporation of India has not yet made a final decision, but a decision is expected in the coming days. If approved, the rollout could be pushed to January, while shares of Indian digital payment companies including Paytm, Mobikwik and Pine Labs fell following reports of the possible delay.

Pic courtesy: google/ images are subject to copyright