India to impose controversial fee for UPI instant payments: Who benefits?

New Delhi, India – Prime Minister Narendra Modi’s government is poised to levy new charges for using the country’s popular, homegrown instant digital payment system for select merchant transactions, raising concerns for businesses.India’s quasi-governmental National Payments Corporation of India (NPCI) has announced that a 0.4 percent fee will apply from October 15 to all UPI (Unified Payments Interface) transactions above 2,000 rupees ($21) made to businesses.Since its introduction a decade ago, the UPI – which allows customers to make instant payments via apps, free of any cost – has transformed how the world’s largest population makes payments. From street vendors to global brands in shopping malls, QR codes are everywhere in India, as cash increasingly gives way to digital payments.However, experts warn that the new charges could push businesses out of the system. The move has also triggered a political storm in India, with the opposition accusing Modi of passing on costs to merchants under foreign pressure.So, what is changing in India’s UPI payments? And who stands to gain and lose?A payment QR code on display in Mumbai, October 31, 2025 [Francis Mascarenhas/Reuters]What chan...