UPI merchant charges begin October 15: Who pays, who does not, and why NPCI says the zero-fee era had to end

Merchants accepting UPI payments above ₹2,000 will pay a fee for the first time from October 15, under a framework cleared by the UPI & services steering committee headed by the National Payments Corporation of India (NPCI), which manages the payments system.

Person-to-person transfers will be exempted from the charge, which has been set at 0.4% of the transaction value, and payments to certain categories will attract a flat ₹5 fee irrespective of the amount.