{
  "id": 8279743,
  "title": "NPCI's 0.4% UPI fee sparks debate",
  "url": "https://urgent.news/2026/09/18/npcis-0-4-upi-fee-sparks-debate",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T17:36:35.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/opinion/et-commentary/upis-free-lunch-is-over-why-the-0-4-mdr-charge-is-fair-needed-and-overdue/articleshow/134340813.cms"
  },
  "original_language": "en",
  "account": "A 0.4% fee on digital UPI transactions caused controversy in India. Critics argue the fee burdens the poor and squeezes small merchants. However, the charges are fair. The NPCI, which runs India's payment system, said person-to-person payments will stay free and transactions up to ₹2,000 are exempt. Small merchants making up to ₹1 lakh monthly transactions are also exempt. The infrastructure to support UPI payments cost billions of rupees annually, and charging users for this service is necessary. While fees were once absent, they ensured the ecosystem grew in urban areas. Currently, digital payments penetration is just 50% in India, compared to over 80% in Brazil and China. Removing the fees disadvantaged new entrants and caused market domination by big corporations. The NPCI introduced MDR charges to promote competition and prevent systemic risk. Merchants are unlikely to pass the fee onto customers, as they already pay similar charges using credit and debit cards. The benefits of digital payments outweigh the small fee, making it justified. Continuing to operate without charges would lead to a poorly maintained payment system, similar to state transport systems.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}