India | October 13, 2026

The planned introduction of a 0.4% merchant fee on Unified Payments Interface (UPI) transactions above ₹2,000 has been postponed until after Diwali, the National Payments Corporation of India (NPCI) said on Tuesday, according to Reuters. The fee had been scheduled to take effect on October 15. NPCI said the revised implementation date would be notified separately.

The decision delays a change that could affect merchants and payment-service providers during the busy festive shopping season. It does not establish that consumers will be charged a fee directly: the announced charge is a merchant fee, and how businesses or payment providers might respond remains to be seen.

Why the rollout was postponed

Reuters reported that NPCI cited the festive season, with Diwali falling on November 8 this year. The proposed fee had drawn objections from retailers and financial-sector participants concerned about introducing new costs and operational changes during a period of high consumer spending.

What merchants and consumers should know

  • No new date yet: NPCI has said the fee will be implemented after Diwali on a date to be announced separately.
  • Merchant fee, not an announced consumer charge: The proposed 0.4% fee applies to merchants for covered transactions above ₹2,000. Any effect on prices or customer terms should not be assumed without further information.
  • Check official updates: Merchants should rely on notices from NPCI, their acquiring bank and payment provider for eligibility and implementation details.

UPI is a central part of India’s retail-payment system, so any change to merchant pricing can have implications for small businesses, payment firms and digital-payment adoption. For now, the key development is the postponement; the final effective date and detailed implementation guidance remain outstanding.

Source

Reporting note: This article reflects reporting available on October 13. The fee’s final start date and any additional NPCI instructions may change.

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