India will introduce a roughly 0.25-0.3% UPI merchant fee on payments above ₹2,000 within the next 12 months, while keeping person-to-person transfers and small purchases free.

Parliament has authorised UPI charges for the first time since 2016, making a targeted levy on higher-value retail payments the likeliest way to monetise the network without provoking backlash from small merchants and consumers.