India considers delaying rollout of UPI payments fee, sources say

India is contemplating delaying the introduction of a fee for large payments through its widely-used Unified Payment Interface (UPI) system, according to sources familiar with the matter. The regulatory official and industry executive revealed the potential postponement of the fee, which was set to begin on October 15. Presently, merchants are charged a 0.4% fee on transactions exceeding 2,000 rupees ($21).

UPI, utilized by over 500 million individuals for a range of transactions, from local snacks to high-end electronics, would have coincided with India's festive season, typically characterized by heightened consumer spending between October and December. The sources stated that the delay would prevent any disruptions to retail payments during this crucial period and provide the payments sector with ample time to adapt to the change.

However, no response has been received from the National Payment Corporation of India. Indian shares initially experienced a subdued trading session, with digital payments companies witnessing a drop in their stock prices. Paytm saw a decline of 7.6%, while One Mobikwik Systems experienced a 7.2% drop.