Overview of the new UPI fee
Starting October 15, a 0.4% charge will apply to UPI payments above ₹2,000. The levy is collected by banks and charged to merchants; it is not a line-item surcharge shown to shoppers. Nevertheless, retailers may adjust prices or trim discounts to recover the cost in higher ticket sizes.
What shoppers should expect during the festive season
- Possible modest price realignments on festive purchases paid via UPI above ₹2,000
- Discounts on big-ticket items could be reduced or offset by slightly higher price tags
- Promotional offers tied to UPI payments may be reworked
Why retailers may respond this way
- To protect margins on high-value transactions
- To maintain pricing consistency across payment methods
- To offset processing costs charged by banks
Tips to save on festive shopping
- Compare prices across retailers and note where alternative payment methods offer better value
- Time purchases to take advantage of non-UPI promotions
- Keep an eye on festive campaigns and adjust your plan accordingly
