GENERAL21 Sept 2026
Govt should retain zero-fee UPI for few more years: NITI Aayog's former VC
From October 15, UPI (Unified Payments Interface) payments to merchants above ₹2,000 will carry a 0.4 per cent merchant fee, capped at ₹300. Customers still pay nothing, and person-to-person transfers stay free. Former NITI Aayog vice-chairman Rajiv Kumar wants zero-fee UPI kept for a few more years, warning fees may push large payments back to cash. Review which of your collections cross ₹2,000.
Key Statutory Highlights
- From October 15, a 0.4 per cent Merchant Discount Rate will apply on UPI person-to-merchant payments above ₹2,000, capped at ₹300 for payments of ₹75,000 and above.
- Customers will not pay any charge on UPI payments, and person-to-person transfers and small payments remain free, with no monthly quotas or volume restrictions.
- Former NITI Aayog vice-chairman Rajiv Kumar said zero-fee UPI should continue for a few more years, arguing its benefits outweigh the ₹20,000 crore cost of running the system.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI, ask your payment provider how this 0.4 per cent merchant fee on payments above ₹2,000 will apply to you, and compare it with your cash-handling costs before you decide on anything.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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