Spasht.
UPI merchant fee row

Traders call off nationwide 'No UPI Day' after meeting Sitharaman; seek phased fee

30 Sept 2026 · 2 outlets · 1 min read

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In 30 seconds
  1. Traders proposed a phased fee starting at 0.2% instead of 0.4% from day one.
  2. They also sought a wider exemption and an expert committee to review concerns.
  3. The 2 October nationwide protest was withdrawn after the meeting.

A delegation of about 20 trade leaders led by BJP MP and CAIT secretary-general Praveen Khandelwal met Finance Minister Nirmala Sitharaman on 30 September 2026 to raise concerns about the UPI fee. They asked for it to be deferred, introduced at 0.2% in 2026-27 and raised by 0.05 points a year to 0.4%, and for the ₹1 lakh small-merchant threshold to be raised to ₹5 lakh. After Sitharaman said their concerns would be considered, the mobile retailers' and distributors' bodies withdrew a 'No UPI Day' planned for 2 October.

What it means for India

A higher exemption threshold would keep more small and mid-sized shops out of the fee; a phased rate would lower the immediate cost for those who pay it.

Checked

Claim by claim

?Unverified

The finance minister assured traders their concerns would be 'duly considered and addressed'.

Said by Trade bodies AIMRA and AICPDF

This is the traders' account of the meeting, reported by PTI via Mint. We did not find the finance ministry's own account.

Mint
✓Verified

The delegation proposed starting the fee at 0.2% in 2026-27 and raising it by 0.05 percentage points a year to 0.4%.

Mint lists this among the delegation's written proposals.

Mint
In their own words

What each side says

Trade bodies

The mobile retailers' association said the fee would hit the 'already thin' margins of small shops and independent retailers. CAIT says it supports digital payments, but 'the system must remain affordable and sustainable for merchants'.

Mint · The Hindu
Finance Minister

According to PTI, Sitharaman heard the traders' concerns and assured them the issues would be considered. The ministry did not announce any change to the fee at the time.

Mint
Honest gaps

Not yet known

  • ?Whether the government will accept the phased rate or the higher threshold.
Who reported this

Sources

Left-leaning · 1Centre · 1

2 outlets across the spectrum. Leanings are a rough guide to who reported it, not a verdict on accuracy.

  1. MintTraders' associations call off 'No UPI Day' protest on 2 October after assurance from Finance Minister Sitharaman
  2. The HinduNPCI pushes back UPI MDR rollout to 'immediately after Diwali'

Spasht writes original summaries. Follow the links to read each outlet's own report. Revision 1.