Merchants will be charged a 0.4% fee on UPI payments exceeding ₹2,000, a move aimed at curbing large‑value payments by big merchants.
Person‑to‑person transfers, which account for about 70% of total UPI value, will remain exempt. Small vendors whose sales stay below the ₹2,000 threshold will also avoid the charge.
With only around 4% of merchant transactions expected to attract the fee, the policy is a modest tweak to the digital‑payment landscape, keeping the system affordable for most businesses while adding a small revenue stream for the government.
