India to charge 0.4% merchant fee on large UPI transactions from Oct 15

India will introduce a 0.4% merchant fee on select high-value transactions processed through its Unified Payments Interface (UPI) starting October 15. The move ends the zero-fee model that had previously applied to larger digital payments on the widely used network. UPI has become a cornerstone of India's digital payments ecosystem, handling billions of transactions across the country. The new fee will be levied on merchants, marking a significant policy shift for the platform. Authorities appear to be moving toward a more sustainable revenue model for the payments infrastructure.