India could delay the rollout of a proposed charge on high-value UPI merchant transactions by a few months, according to a Reuters report citing people familiar with discussions between regulators and the payments industry.
The proposed 0.4% fee on eligible merchant transactions above Rs 2,000 was expected to come into effect from October 15. However, the National Payments Corporation of India (NPCI) is yet to take a final decision on whether to push back the implementation.
When could the new UPI fee take effect?
If the proposal to defer the rollout is approved, the new charge could be introduced in January instead of October. The additional time would allow payment companies to modify their systems and give merchants an opportunity to prepare for the change. It would also avoid introducing a new payment-cost structure during the October-December festive shopping period, when digital transactions typically increase.
You Might Be Interested In
For now, there is no confirmed change to the October 15 timeline.
Will consumers have to pay 0.4% on UPI payments?
The proposed charge does not mean that consumers will directly pay 0.4% on every UPI transaction. The fee is structured as an interchange or merchant-side charge and would apply to eligible merchant transactions exceeding Rs 2,000. UPI users can therefore continue making payments without an additional 0.4% charge under the proposal.
Comments
0 commentsNo comments yet — be the first.