Reuters reported that officials are considering pushing back a 0.4 percent merchant fee on UPI payments above 2,000 rupees, due on 15 October, possibly into January. NPCI had not confirmed a decision.
India is considering a delay of several months to a fee on large payments over the Unified Payments Interface, Reuters reported on Thursday, citing a regulatory official and an industry executive. The 0.4 percent merchant fee on transactions above 2,000 rupees was set to start on 15 October. A final decision had not been announced.
Reuters said India last month ended a fully free UPI regime by allowing that merchant fee. UPI is used by more than 500 million people. The sources said a delay would avoid changing retail payment costs during the festive season, which runs from October into December, and would give payment firms more time to prepare. An industry executive told Reuters the charge could instead start in January.
The National Payments Corporation of India did not answer an email from Reuters. The agency said local media reported the likely delay first. Investors had treated the fee as a monetisation opening for payment providers, which were expected to receive a share, Reuters said. The headline on the Reuters story noted that payment stocks slid after the report.
The fee, if it proceeds, would be charged on the merchant side for eligible transactions above the threshold. Reuters did not say consumers would pay a separate 0.4 percent at the till. No government order postponing the date was published in the dispatch.
Until NPCI or the finance ministry issues a decision, 15 October remains the date previously set. The item is a reported consideration, not a confirmed postponement.