Wire · operational-macro
Govt eyes fees on UPI transactions over Rs 2000
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Fusion42 · 5 August 2026 · Fusion42 review
The Indian government is considering introducing merchant discount fees on UPI transactions exceeding Rs 2,000 for businesses with annual turnover above Rs 1.5 crore, while keeping person-to-person transfers free. This move is part of a proposed amendment to the Payment and Settlement Systems Act to allow future levy of Merchant Discount Rates (MDR), addressing operational costs of maintaining the UPI system.
This Wire brief sits within Fusion42's coverage of Fintech, and 40 sources have reported it between 19 Jul 2026 and 22 Aug 2026.
◆ ◆ The Wire takeaway
You face a new cost pressure if your fintech or merchant services business relies on UPI transactions above Rs 2,000. Start identifying which merchant clients might be affected and plan solutions that absorb or transparently pass on these charges.
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40 sources · first reported 19 Jul 2026 · latest 22 Aug 2026
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