Implementation of UPI merchant discount fees postponed until after Diwali; new date to be announced

The National Payments Corporation of India (NPCI) has postponed until after Diwali the introduction of merchant discount fees on some high-value UPI person-to-merchant transactions. The specific date will be announced separately. The fee was originally scheduled to take effect on October 15, charging 0.4% on transactions above 2,000 rupees, with an industry-specific rate framework. India’s Supreme Court has not stayed the implementation but has directed the relevant authorities to explain the legal basis for the fee within four weeks.