India Delays UPI Fee for Large Transactions Until After Diwali

India delays 0.4% UPI fee on transactions over ₹2,000 until after Diwali to ease festive season burden.

October 13, 2026 One Min Read

POLICY WIRE — Mumbai, India — India has pushed back the implementation of a 0.4% fee on large transactions through its Unified Payments Interface (UPI) until after the Diwali festival, according to the National Payments Corporation of India (NPCI). The decision aims to support merchants and consumers during the peak shopping season.

The proposed charge, which would apply to transactions exceeding ₹2,000 ($21), was initially set to take effect on October 15. However, the UPI and Services Steering Committee decided to delay it, citing concerns from merchant groups and the need for additional preparation time ahead of the holiday period.

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This move comes as part of a broader effort to manage the first major pricing adjustment in India’s largest digital payments network. The revised rollout date is expected to be announced soon, with officials emphasizing the importance of ensuring a smooth transition for all stakeholders involved.

Reporting by Policy-Wire (PW)

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