India's NPCI postpones 0.4% UPI merchant fee planned for October 15 until after Diwali
The National Payments Corporation of India delayed a 0.4% fee on UPI merchant transactions above ₹2,000, citing the festive season and retailer pushback. No new date has been given.
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The story, neutrally told
Centre · 2The National Payments Corporation of India (NPCI), which operates the Unified Payments Interface (UPI), said on Tuesday 13 October it was postponing the planned 15 October rollout of a 0.4% fee on eligible merchant transactions above ₹2,000 (about $21). TechCrunchN “said on Tuesday it was postponing the planned October 15 rollout of a 0.4% fee on eligible merchant transactions exceeding ₹2,000 (about $21), citing the festive shopping season” Read at TechCrunch ↗ CNAN “announced on Tuesday (Oct 13) that a 0.4 per cent charge for merchants on transactions exceeding 2,000 rupees (US$21) would be postponed until after the holiday” Read at CNA ↗ Centre · 2The fee will now take effect after Diwali (Deepavali), which falls on 8 November, but NPCI did not specify a new date. TechCrunchN “The rollout will now take place after Diwali, one of India’s biggest festivals and shopping periods, though the NPCI did not specify a new date.” Read at TechCrunch ↗ CNAN “while Deepavali falls on Nov 8” Read at CNA ↗ Centre · 1TechCrunch reported the delay followed broad pushback from merchants, with retailers and petrol pump operators opposing the fee and some warning they could stop accepting UPI payments. TechCrunchN “The proposed fee drew opposition from retailers and petrol pump operators, some of whom warned they could stop accepting UPI payments if the charge took effect.” Read at TechCrunch ↗
Centre · 2The fee, announced last month, would end UPI's zero-cost status for merchants; the government scrapped merchant fees in January 2020 to push people away from cash and has since subsidised banks and payment providers. TechCrunchN “the Indian government scrapped those fees in January 2020 as it sought to encourage more people to shift away from using cash” Read at TechCrunch ↗ CNAN “a change that will end more than six years of zero-cost UPI payments” Read at CNA ↗ Centre · 2NPCI had tried to limit the impact by exempting payments of ₹2,000 or less and small merchants receiving under ₹100,000 a month via UPI, and by capping the fee at ₹300 on larger transactions; consumers will not pay it. TechCrunchN “exempting payments of ₹2,000 or less, as well as small merchants that receive less than ₹100,000 (about $1,033) a month through UPI. It also capped the fee at ₹300” Read at TechCrunch ↗ CNAN “the upcoming charges will be borne by merchants rather than consumers” Read at CNA ↗ Centre · 2UPI processed 24.07 billion transactions worth ₹29.37 trillion in September, according to NPCI; CNA said around 95% were below the ₹2,000 threshold and would not have attracted the fee. TechCrunchN “UPI processed 24.07 billion transactions worth ₹29.37 trillion (about $305 billion), per NPCI.” Read at TechCrunch ↗ CNAN “Around 95 per cent were below the 2,000-rupee threshold and would not have attracted the fee.” Read at CNA ↗
Centre · 2NPCI says the fees are needed to cover running costs; citing industry estimates, it put the annual cost at about ₹200 billion (about $2.1 billion), covering server capacity, fraud prevention and support, and said the money would be shared among ecosystem participants. TechCrunchN “the annual cost of running UPI was about ₹200 billion (around $2.1 billion), including spending on server capacity, fraud prevention, and technical support” Read at TechCrunch ↗ CNAN “NPCI has said the fees are needed to help cover the costs of maintaining the system” Read at CNA ↗ Centre · 1CNA quoted Mumbai clothing store owner Shubham Dubey, whose customers pay 70% by UPI, as saying he would suggest cash once fees apply, while Sohom Banerjee of Quantive Advisory said some retailers will absorb the charge and others will cut discounts, adjust prices or push other payment methods. CNAN “Seventy per cent of them make UPI payments,” said Shubham Dubey”“Others may reduce discounts, adjust prices or encourage a different payment method.” Read at CNA ↗ Centre · 1Reserve Bank of India governor Sanjay Malhotra said earlier this month he did not expect a small fee to have a major impact on volumes. CNAN “I don't personally think that a small fee will have a major impact on the volumes” Read at CNA ↗
Every sentence links to the reporting it rests on. The pill in front of each says where its sources sit: Left, Centre or Right when one side supplies at least half of them, Mixed when they are evenly split. The number is how many outlets it cites.
Left0 outlets
No left outlet in our sources has covered this story yet.
Centre2 outlets
- Framing
- Both centre outlets treat it as a postponement of a contested fee: TechCrunch leads on merchant pushback and the delay, CNA on how retailers prepare and why experts say the fees are needed.
- Emphasis
- TechCrunch: fee design, history of free UPI, running costs. CNA: retailer reactions, expert rationale, central bank governor's view.
- Leaves out or plays down
- TechCrunch includes no retailer or expert quotes; CNA does not mention petrol pump operators' threats to stop accepting UPI.
- For example
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“Following broad pushback from merchants across the country, India has delayed plans to introduce merchant fees” — TechCrunch
“even as experts argue they are needed to sustain the fast-growing networ” — CNA
Right0 outlets
No right outlet in our sources has covered this story yet.
What every side reports
- NPCI postponed the 0.4% merchant fee on UPI transactions above ₹2,000 from 15 October to after Diwali, with no new date given.
- The fee falls on merchants, not consumers, and UPI has been free for merchants since January 2020.
- UPI processed over 24 billion transactions in September.
National Payments Corporation of India organisation
Says it postponed the rollout because of the festive shopping season and that fees are needed to fund UPI's running costs, including fraud prevention and cybersecurity.
“citing the festive shopping season” — TechCrunch
“NPCI has said the fees are needed to help cover the costs of maintaining the system” — CNA
Left0 articles
No coverage yet.
Centre2 articles
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India delays digital payments fee rollout amid retailer pushback
Neutral News report on the delay, led by merchant pushback and background on the fee's design and cost rationale.
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CNAN ·
India retailers weigh impact of upcoming UPI transaction fees
Neutral Explainer weighing retailers' worries against experts' view that fees sustain UPI's growth.
Right0 articles
No coverage yet.
- 13 Oct 14:25 First TechCrunchN India delays digital payments fee rollout amid retailer pushback
- 15 Oct 11:20 +44h 55m CNAN India retailers weigh impact of upcoming UPI transaction fees
Times are when each article was published, or when we first saw it if the outlet gave no time.
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