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Wire · regulatory

Will UPI transactions over ₹2,000 soon attract merchant fee?

5 August 2026 · By · Wire by Fusion42

Published

5 August 2026

Topic

regulatory

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at barandbench.com →

◆ Verified

Fusion42 · 5 August 2026 · Fusion42 review

The Indian government introduced a bill to amend the Payment and Settlement Systems Act, 2007, permitting charges on certain electronic payments such as UPI transactions above ₹2,000, effectively reintroducing a merchant discount rate.

This Wire brief sits within Fusion42's coverage of Fintech, and 2 sources have reported it between 5 Aug 2026 and 17 Aug 2026.

◆ ◆ The Wire takeaway

You face a new cost on high-value UPI transactions as the government permits merchant fees above ₹2,000. If your product handles UPI payments, pricing and customer contracts must adjust accordingly to protect margins.

◆ Coverage

2 sources · first reported 5 Aug 2026 · latest 17 Aug 2026

◆ Related on Wire

◆ Topics

Fintechupimerchant-feepayment-regulationindiafintech