Neutral impactSector
Merchant fee on UPI rolling out as transaction floor set at Rs 2,000
Economic Times 2 hrs ago·15 Sept 2026, 12:00 am
The government has amended the Payment and Settlement Systems Act to allow banks to charge merchant fees on UPI transactions. Currently, UPI is free for users, but a transaction floor of Rs 2,000 has been set. This means merchants will not pay the fee for small-value payments below this limit, easing the burden on small businesses. The charges, known as the Merchant Discount Rate (MDR), are expected to be nominal and will apply only to a limited number of transactions.
This move is significant for the broader market as it aims to improve the financial health of banks and payment system operators. While the fee will not apply to small transactions, it introduces a new cost structure for merchants. Investors should watch for the official directive from the National Payments Corporation of India (NPCI) to understand the exact fee structure and how it will impact digital payment adoption in the long run.
Excerpt from Economic Times
India has exempted transactions up to ₹2,000 via UPI and RuPay debit cards from charges. This move allows for the reintroduction of merchant discount rate on UPI transactions. The government amended the Payment and Settlement Systems Act to enable these changes. Future MDR charges on UPI will be nominal and apply to…Read the original at Economic Times
Key takeaways
- Category: Sector.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
