New UPI merchant fee starts 15 October 2026

No toll
on UPI

From 15 October, merchants will pay a 0.4% fee on eligible UPI payments above ₹2,000.

We’re asking for it to be withdrawn, and we’re submitting every signature to the Ministry of Finance, RBI and NPCI on 12 October.

0 people have signed · 0 founders and businesses

Goal: 10,000 signatures. Signing closes 11 October, 11:59 pm.

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What changes on 15 October

NPCI’s framework, notified on 15 September 2026, adds a merchant discount rate to some UPI payments. Here is exactly what it does, including what stays free.

0.4% on merchant payments above ₹2,000
Charged to the merchant on the full payment. A ₹3,000 payment carries ₹12.
Capped at ₹300 per payment
The cap is reached at ₹75,000. GST at 18% applies on the fee.
Sending money to people stays free
Person-to-person UPI has no fee at any amount.
Merchant payments up to ₹2,000 stay free
Small everyday purchases carry no MDR.
Small merchants are exempt
Zero MDR for small merchants up to ₹1 lakh monthly receipts.
AutoPay is excluded
Recurring bills, subscriptions and SIPs through mandates carry no MDR. Essential sectors pay a flat ₹5.

The toll meter

Run a business? See what the new fee could cost you in a month and a year. These are estimates from the published rates, not a bill.

Estimated fee per month
₹3,600
Per year, before GST₹43,200 GST at 18% on the fee, per year₹7,776 Payments charged per month150 Fee on each of those payments₹24
Estimate from the published rate: 0.4% above ₹2,000, capped at ₹300. Registered businesses may claim input tax credit on GST. Essential sectors pay a flat ₹5 instead.

Why we oppose it

Customers aren't charged, and most small payments stay free. We say so plainly. Our objection is to what the fee does to a payment system India built for everyone, and to the businesses above the line.

UPI is public infrastructure

India made UPI universal by keeping it free to accept. Public roads get funded; they don't charge each car at the shop door.

Growing businesses carry it

The exemptions protect the smallest. The cost lands on businesses that are growing and going digital: startups, D2C brands and MSMEs.

Cash has no fee

For years, businesses were asked to go digital. A fee on digital acceptance, and none on cash, sends the wrong signal.

Customers pay in the end

No cost stops at the till. A shop facing a new fee on every sale covers it somewhere, usually in its prices. Customers aren’t billed for MDR, but over time they are likely to carry part of it.

The Government’s case

  • Running UPI at 24.5 billion transactions a month costs money for servers, fraud prevention and cybersecurity.
  • Budget support covers only part of that cost, and a parliamentary committee called for a revenue model.
  • About 96% of merchant payments stay unaffected, and consumers pay nothing.

Our answer

  • We agree UPI needs sustainable funding.
  • Charging merchants on every payment is the wrong way to pay for something the whole country uses.
  • Other options deserve consultation first: budget support, revenue from value-added and credit-on-UPI services, and charging large aggregators rather than general merchants.

Point chaar,
nahi chalega

Signing closes 11 October. Every name counts in the submission.

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