Traders Divided Over NPCI's 40 Basis Point UPI Charge On Large Payments

Mumbai: Traders are divided over the National Payments Corporation of India's decision to levy a 40-basis-point merchant discount rate on UPI transactions above Rs 2,000. The Confederation of All India Traders supports the move as balanced, noting the government's Rs 20,000 crore cyber security spend on UPI infrastructure.

However, the Federation of Retail Traders Welfare Association has urged Finance Minister Nirmala Sitharaman to reconsider, warning the charges could encourage payment splitting to avoid fees and divert business receipts to personal accounts. The association argues UPI's success stems from being simple, fast, and free, and the proposed charges risk undermining this advantage.