Wire · technology
UPI merchant charges? Nirmala Sitharaman tables Payment and Settlement Systems Bill
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Fusion42 · 6 August 2026 · Fusion42 review
India's Finance Minister introduced amendments to the Payment and Settlement Systems Act to allow merchant discount rates (MDR) on UPI digital payments, potentially ending the zero-cost era for merchants. The government is considering fees of 0.3% to 0.5% on transactions above Rs 2,000 for merchants with annual turnover over Rs 1.5 crore, while exempting small businesses and consumers.
This Wire brief sits within Fusion42's coverage of Fintech, and 12 sources have reported it between 19 Jul 2026 and 12 Aug 2026.
◆ ◆ The Wire takeaway
You face an upcoming cost on high-value UPI transactions if your payments rely on large merchants in India. Adjust your pricing or customer targets now before the merchant fees reshape the competitive landscape.
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12 sources · first reported 19 Jul 2026 · latest 12 Aug 2026
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