Wire · operational-macro
UPI transaction charges: Who will pay, who will earn and will small transactions stay free – explained
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Fusion42 · 16 September 2026 · Fusion42 review
India's Finance Ministry has confirmed UPI transactions up to ₹2,000 will remain free from any charges, covering 96% of transaction volume, while regulators consider introducing a roughly 0.4% fee on larger person-to-merchant payments, with banks set to receive 40% of the proceeds. Person-to-person UPI transfers are expected to stay free regardless of value.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
You face a new revenue split if you facilitate larger UPI merchant payments as regulators are moving toward charging a fee on transactions above ₹2,000. Position your product to handle fee collection and explore partnerships with banks who will get a substantial share.
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1 source · 15 Sep 2026
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