EconomyWednesday, 14 October 2026·Hindu Tamil Thisai
NPCI postpones UPI merchant transaction fee collection after Diwali 2026
NPCI has deferred the UPI merchant transaction fee collection plan, and the new date will be announced later after Diwali.
Key highlights
Direct fact
In October 2026, the National Payments Corporation of India (NPCI) deferred the proposed UPI merchant transaction fee collection plan, saying it will come into effect after Diwali.
Key specifics
- UPI was launched in India in August 2016.
- About 55.5 crore people use UPI across the country.
- NPCI had announced a 0.4% fee for business UPI transactions above ₹2,000.
- Transactions up to ₹2,000 remain free, while small merchants with monthly UPI turnover up to ₹1 lakh get exemption.
- The central government spent ₹8,276 crore in the last 4 years to keep UPI transactions free.
Exam lens
Economy and digital payments are TNPSC favourites: August 2016 UPI launch, NPCI, 55.5 crore users, ₹2,000 threshold, 0.4% fee, ₹8,276 crore government support. A likely question is on the fee slab and the exemption for small merchants.