India’s finance ministry is preparing daily oversight of a new merchant discount rate framework for UPI transactions from October 15, aiming to prevent payment aggregators from passing the 0.4% fee on to consumers. Officials say the revenue model is being designed to support small merchants while preserving the rapid expansion of digital payments.
The move comes as the government negotiates with industry players over how the charge will be applied, with a clear policy line that customers should not bear the cost. The plan reflects a broader effort to balance payment-system economics with the political and economic imperative of keeping UPI free at the point of use for shoppers.
India’s finance ministry is preparing daily oversight of a new merchant discount rate framework for UPI transactions from October 15, aiming to prevent payment aggregators from passing the 0.4% fee on to consumers. Officials say the revenue model is being designed to support small merchants while preserving the rapid expansion of digital payments.
The move comes as the government negotiates with industry players over how the charge will be applied, with a clear policy line that customers should not bear the cost. The plan reflects a broader effort to balance payment-system economics with the political and economic imperative of keeping UPI free at the point of use for shoppers.
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Reported by RDU Global Correspondent. Formatted and verified using real-time institutional and journalistic wire feeds. Independent reporting adhering to the RDU Global Editorial Code of Conduct.
