New Delhi: The Union government is learnt to be considering a postponement of the proposed fee on UPI-based commercial transactions above Rs 2,000, amid concerns that it could affect spending during the festive season.
UPI operations are estimated to cost about Rs 21,000 crore annually, raising questions over who should bear the expense. Last month, the Centre approved collecting a 0.4% charge from merchants on such higher-value business transactions.
The National Payments Corporation of India (NPCI) had announced that the new fee regime would come into effect from October 15. Under the plan, consumers would not be charged directly, and merchants would bear the fee.
However, there are apprehensions that merchants may pass the cost on to customers. With major festivals lined up from October to December—followed by New Year and Pongal—traders are expecting strong seasonal sales.
With more than 50 crore users relying on UPI, many fear the new charge could dampen festive purchases. Officials said the government is therefore examining whether to defer the MDR-like fee for a few months to give merchants time to transition.
