India delays digital payment fees for retailers

NPCI postponed implementation of a 0.4% merchant fee on digital payments exceeding ₹2,000 (≈$21) after Diwali, following retailer pushback.

The National Payments Corporation of India (NPCI) postponed implementation of a 0.4% merchant fee on digital payments transactions exceeding ₹2,000 (≈$21) scheduled for October 2023, effective after Diwali. This change follows retailer pushback to avoid payment cost spikes during high-demand periods. The fee exemption applies to merchants receiving less than ₹100,000 (≈$1,033) monthly via UPI, with a maximum transaction fee cap of ₹300 (≈$3). NPCI reported 24.07 billion UPI transactions worth ₹29.37 trillion (≈$305 billion) in September 2023. The government scrapped UPI merchant fees in January 2020. NPCI has not specified a new rollout date for the fee policy shift. This adjustment helps small retailers manage costs during seasonal demand peaks without triggering fee spikes.

Source: TechCrunch