India paves way for return of merchant fees on digital payments

# India paves way for return of merchant fees on digital payments

> Evidence tier: B1
> Evidence type: Independent Reuters report syndicated by MarketScreener
> Source: [Reuters / MarketScreener](https://www.marketscreener.com/news/india-paves-way-for-return-of-merchant-fees-on-digital-payments-ce7f50ded880f524)
> Published: 2026-08-04
> Captured: 2026-08-04T14:08:07.615Z

## Source summary

Reuters reports that an amendment tabled in India's parliament would create a legal basis for a merchant discount rate on digital payments, including UPI, but that no fee level or scope has been decided. UPI processed 23.6 billion transactions worth 29.9 trillion rupees ($313.5 billion) in July; one reported option would charge large merchants 0.3% to 0.5% on transactions above 2,000 rupees while keeping consumers and small merchants free.

## Why it matters

UPI's zero-merchant-fee model shapes the economics of one of the world's largest real-time payment systems. A future fee could fund provider investment but change merchant incentives and the cost base behind UPI's international links; the amendment only enables a possible charge, and the reported thresholds and rates are options rather than adopted policy.

## Key numbers

- **UPI July transaction count:** 23.6 billion
- **UPI July transaction value:** 29.9 trillion rupees ($313.5 billion)
- **Reported large-merchant MDR option:** 0.3% to 0.5% above 2,000 rupees

## Topics and entities

- Industry lane: Payment infrastructure
- Entities: India / UPI
- Payment infrastructure
- Cross-border payments
- Company intelligence

## Evidence and credibility note

Reuters reporting based on the tabled amendment and unnamed industry and regulatory sources. No MDR level or coverage has been adopted; quoted rate options remain proposals.

Date evidence: Automatically verified from article:published_time: 2026-08-04T12:50:27+02:00

## First-party corroboration

No directly corresponding A1 company announcement is currently linked.

## Original-source traceback

[Open the original Reuters / MarketScreener report](https://www.marketscreener.com/news/india-paves-way-for-return-of-merchant-fees-on-digital-payments-ce7f50ded880f524)

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This is a structured Payments Hot Markdown source summary derived from external reporting. Use the original link above to read the publisher's article; copyright remains with the original publisher.