NPCI delays 0.4% fee on UPI transactions over ₹2,000 after retailer pushback
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Digital payment infrastructure sustainability vs merchant interests: a GS3 economy and financial inclusion case study.
Why in news
NPCI delayed the implementation of a 0.4% fee on UPI merchant transactions exceeding ₹2,000 due to pushback from retailers and petrol pump operators.
Background
The National Payments Corporation of India (NPCI) planned to roll out a 0.4% fee on eligible merchant transactions over ₹2,000 starting October 15. In September, UPI processed 24.07 billion transactions totaling ₹29.37 trillion.
Facts for Prelims
- BodyNPCI: National Payments Corporation of India
- FactUPI processed 24.07 billion transactions in September
- FactUPI transaction value reached ₹29.37 trillion in September
- FactProposed fee: 0.4% on merchant transactions exceeding ₹2,000
Prelims practice question
What was the total value of UPI transactions processed in September as per the report?
- (a)₹29.37 billion
- (b)₹24.07 trillion
- (c)₹15.50 trillion
- (d)₹29.37 trillion
Show answer
Answer: (d) ₹29.37 trillion — The note states that UPI transaction value reached ₹29.37 trillion in September.
For Mains
Q. Discuss the challenges in balancing the sustainability of digital payment infrastructures with the interests of small-scale merchants and retailers in India.
Dimensions to cover in your answer
- Revenue model sustainability: Balancing infrastructure maintenance costs with zero-fee expectations for small merchants
- Digital adoption friction: Potential impact of transaction fees on merchant behavior and consumer preference for UPI
Keywords: Digital Public Infrastructure · Payment Interoperability · Transaction Costs · Merchant Ecosystem · Financial Inclusion
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.