Rule takes effect on 15 October 2026
Under the new government rule, ordinary consumers will not pay merchant processing fees on UPI transfers, aiming to simplify digital payments and reduce checkout costs.
First five transactions stay free
The policy keeps the existing provision that the first five UPI payments per user will remain free of merchant charges.
Impact for users and merchants
- Shoppers may see lower costs at checkout when paying via UPI
- Merchants and payment providers will adapt pricing and settlement practices to the new regime
What customers should do
Users should update their payment apps and watch notices from their banks as the date approaches to confirm how the changes are applied to their accounts
