New UPI Charges 2026: 0.4% Merchant Fee Explained

Wed, 16 Sep 2026 09:36:53 +0000

Everyday consumers using the Unified Payments Interface (UPI) will not pay any extra transaction fees under the 2026 commercial payment updates, but merchants processing business transactions exceeding Rs 2,000 now face a targeted 0.4% merchant fee, capped at Rs 300 per transaction. A gazette notification dated September 14, 2026 formally bars any charge on UPI or RuPay debit card transactions up to Rs 2,000, while NPCI’s 0.4% merchant fee on larger Person-to-Merchant (P2M) payments takes effect from October 15, 2026. The fee structure applies strictly to commercial transactions routed through formal payment gateways and commercial acquiring channels, leaving routine peer-to-peer transfers completely free.

Fintech India on NV Trends

New UPI Charges 2026: 0.4% Merchant Fee Explained