Wire · operational-macro
Why Zero-Fee UPI Transactions Are Crucial For India's Digital Economy
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Fusion42 · 21 September 2026 · Fusion42 review
India has introduced a 0.4% merchant discount rate fee on UPI transactions over Rs 2,000 to merchants starting October 15, while smaller person-to-person transactions remain free. Former NITI Aayog vice-chairman Rajiv Kumar argues to maintain zero-fee UPI transactions to support digital payments growth and prevent a shift back to cash.
This Wire brief sits within Fusion42's coverage of Fintech, and 13 sources have reported it between 16 Sep 2026 and 29 Sep 2026.
◆ ◆ The Wire takeaway
You face a new fee barrier for larger UPI merchant transactions that could push users back to cash if you do not adapt your payment model. Review your pricing or product strategy now to keep digital payments attractive and prevent volume loss.
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13 sources · first reported 16 Sep 2026 · latest 29 Sep 2026
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