UPI Transactions Above ₹2,000 to Attract Charges After Diwali 2026

The proposed transaction fee for commercial UPI payments exceeding ₹2,000 will be implemented after the Diwali festival, according to the National Payments Corporation of India (NPCI).

The Central Government had recently approved a 0.4% transaction fee on eligible merchant payments above ₹2,000. The new system was initially scheduled to take effect on October 15, 2026.

However, traders expressed concerns that introducing the charges during the festive season could affect sales. The period from October to December includes major festivals such as Dussehra, Diwali and Christmas, followed by New Year and Pongal celebrations.

Considering these concerns, the government reportedly examined the possibility of postponing the implementation.

In its latest statement, NPCI said the decision to introduce charges on commercial UPI transactions exceeding ₹2,000 had been deferred until after Diwali, taking the festive season into account.

The revised implementation date has not been specified in the information provided.

Key Takeaway: The proposed 0.4% fee applies to eligible commercial UPI transactions above ₹2,000. The announcement concerns merchant payments, not necessarily ordinary person-to-person UPI transfers.