New Delhi, 16 September 2026 – India has introduced a merchant-discount framework for selected Unified Payments Interface transactions, giving banks and payment applications a new revenue channel while keeping person-to-person transfers and most merchant payments free. The design attempts to fund infrastructure without undermining mass adoption.
Person-to-person transfers remain free regardless of amount. Merchant payments up to INR2,000 and transactions covered by the small-merchant zero-fee framework also remain free, leaving about 96% of person-to-merchant transactions unaffected. Fees apply only to specified merchant payments above the threshold.
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