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Business
Government to levy UPI transaction fees after Diwali to aid shopkeepers
✍️ Bhaskar English
🗓 13 Oct 2026, 07:36 PM
👁 14
The central government announced that UPI transaction charges will be introduced after the Diwali festival, aiming to ease the financial burden on retailers during the peak shopping period.
New Delhi – The Union government has decided to impose a fee on Unified Payments Interface (UPI) transactions once the Diwali celebrations conclude. The policy change is slated to take effect shortly after the festival, which traditionally sees a surge in electronic payments across the country.
Officials said the charge is intended to generate additional revenue that can be redirected to schemes supporting small and medium‑size retailers, who often face cash‑flow pressures during the high‑volume festive season. By timing the fee after Diwali, the government hopes to avoid disrupting the surge in consumer spending that drives the holiday economy.
Industry observers note that the move could alter the cost structure for merchants who rely heavily on UPI for daily sales. While the exact rate of the charge has not been disclosed, the government has indicated that the proceeds will be earmarked for relief measures aimed at strengthening the retail sector.
The decision comes as part of a broader effort to balance the rapid growth of digital payments with the fiscal needs of the nation, ensuring that the benefits of a cash‑less economy are shared across all stakeholders.
Officials said the charge is intended to generate additional revenue that can be redirected to schemes supporting small and medium‑size retailers, who often face cash‑flow pressures during the high‑volume festive season. By timing the fee after Diwali, the government hopes to avoid disrupting the surge in consumer spending that drives the holiday economy.
Industry observers note that the move could alter the cost structure for merchants who rely heavily on UPI for daily sales. While the exact rate of the charge has not been disclosed, the government has indicated that the proceeds will be earmarked for relief measures aimed at strengthening the retail sector.
The decision comes as part of a broader effort to balance the rapid growth of digital payments with the fiscal needs of the nation, ensuring that the benefits of a cash‑less economy are shared across all stakeholders.