NPCI May Delay UPI Transaction Fees Until January 2027

India's National Payments Corporation is reconsidering the timeline for introducing charges on high-value transactions across the Unified Payments Interface network, according to industry sources.

The fee structure was originally scheduled to launch on 15 October. An industry executive told Reuters that implementation could now shift to January 2027.

Indian business news outlet Moneycontrol first broke the story, reporting that NPCI had received numerous appeals from merchant groups, fintech companies, and payment service providers requesting the postponement.

Last month, NPCI unveiled plans to implement a 0.4% merchant discount rate on UPI transactions exceeding ₹2,000 (approximately $20.80).

The corporation stated that proceeds from this levy would support several operational priorities:

• System resilience improvements
• Technical infrastructure upgrades
• Enhanced cybersecurity measures
• Expanded customer support capabilities

The original 15 October rollout date falls during India's peak festive shopping period, which runs from October through December and accounts for a significant surge in retail transactions.

According to the Reuters report, delaying the launch would provide payment processors additional time to update their systems, help merchants avoid passing new costs to shoppers, and prevent technical disruptions during the critical holiday sales window.

The UPI platform has grown to serve more than 500 million active users across India, making it the country's dominant real-time payment network.

In August, two providers controlled roughly 80% of total transaction value on the platform: Walmart-backed PhonePe and Alphabet-owned Google Pay.

NPCI has not yet issued a final determination on whether to defer the fee implementation. An official announcement is anticipated within the coming days.

The corporation operates the UPI network and has sole authority over the rollout schedule.