UPI Transactions

An ISB survey finds that 10.4 per cent of vendors face additional charges from suppliers for UPI payments, even as the proposed MDR levy remains deferred until after Diwali

Festive spending pushed UPI transactions to 25.47 billion, worth ₹31.53 trillion, even as the proposed merchant discount rate remains in focus

SBI Chairman C S Setty says the bank is working with NPCI to prevent UPI merchant charges from reaching customers, while FCNR(B) inflows will ease deposit competition

NPCI has postponed the levy of MDR on select UPI merchant transactions, originally due from October 15, while leaving the proposed fee structure unchanged

The MDR, which was to be applicable from October 15, will now come into force after Diwali, according to a notification by NPCI.

Shares of Paytm, MobiKwik and Pine Labs declined amid reports that the proposed UPI merchant discount rate could be deferred to January 2027 from October 15

A 0.4 per cent merchant discount rate takes effect on October 15, while small payments remain free; UPI recorded 802 million average daily transactions in September.

RBI Governor Sanjay Malhotra said a small MDR on select UPI payments is unlikely to materially affect transaction volumes as the new charge takes effect from October 15

Banks have been asked to strengthen end-to-end digital lending and widen access to UPI credit lines as the government pushes deeper financial inclusion

Clocks highest daily avg volume of over 800 mn transactions

UPI processed an average 802 million transactions a day in September, up about 1 per cent from August, while transaction value also remained firm despite the MDR backlash

The Supreme Court has asked the Centre to explain the basis for UPI charges above ₹2,000, but refused to stay the new framework set to take effect from October 15

Mobile phone retailers across India plan to observe October 2 as "No UPI Day" in protest against 0.4 per cent merchant discount rate charges on UPI transactions, a senior official of industry body AIMRA said. The government has introduced a 0.4 per cent fee on UPI transfers exceeding Rs 2,000 to merchants from October 15, while exempting person-to-person transactions as well as small payments from any charges. "The All India Mobile Retailers Association (AIMRA) has called for a 'NO UPI DAY' on October 2, 2026, to highlight the concerns of mobile retailers regarding the 0.4 per cent Merchant Discount Rate (MDR) applicable to eligible merchant UPI transactions," AIMRA Vice President and President for Delhi NCR region, Tarvinder Singh, said in a statement. He said retailers will symbolically cover UPI QR Codes with black cloth and refrain from accepting UPI payments on Gandhi Jayanti. According to a representation sent to Finance Minister Nirmala Sitharaman by AIMRA, the move to impos

The Supreme Court will on Monday hear a plea challenging the Centre's decision to impose a Merchant Discount Rate (MDR) on specified UPI person-to-merchant transactions of over Rs 2,000. Ending nearly six years of fully free UPI payments, the government has introduced a 0.4 per cent fee on transfers worth over Rs 2,000 made to merchants through the UPI platform from October 15 while explicitly ring-fencing everyday person-to-person transactions and small payments from any charge. The MDR will be capped at Rs 300 for payments of Rs 75,000 and above. Essential and thin-margin sectors -- railways, telecom, insurance, fuel and agricultural inputs -- will pay a flat MDR of Rs 5 per transaction above Rs 2,000. Payments into mutual funds, securities and through stockbrokers and dealers will attract 0.02 per cent MDR, also capped at Rs 300. Person-to-person (P2P) transfers -- which make up 37 per cent of UPI's transaction volume and 70 per cent of its transaction value -- will continue to

Finance Minister Nirmala Sitharaman has said the charge on specified merchant transactions above ₹2,000 will be borne within the payments ecosystem, while UPI payments by customers will remain free

From October 15, MDR will apply to certain UPI payments above ₹2,000 made to large merchants, while customers and eligible small vendors will continue to pay no fee

Today's Best of BS Opinion weighs UPI's funding model, freight corridor gains, India's AI strategy, Delhi's student housing crisis and J S Deepak's memoir

An SBI official says the UPI merchant discount rate could cover the bank's transaction costs and leave a small surplus, while merchants may split payments to avoid the fee

All marketers know that offering something 'free' can act as a customer magnet. This has fascinated behavioural economists

A fee on UPI transactions is economically logical, but it reflects the govt's evolving approach to one of its key political constituencies