Merchants to be charged 0.4% for UPI transactions over ₹2,000; small vendors exempt
India's finance ministry announced that merchants will incur a 0.4% fee on UPI payments exceeding ₹2,000, while small vendors and person‑to‑person transfers remain exempt. P2P transactions represent about 70% of UPI value, and the new charge will affect roughly 4% of merchant transactions, according to the ministry. The levy is intended to broaden the tax base on digital commerce.