India is considering postponing the implementation of a fee on large transactions through its Unified Payments Interface (UPI), according to a regulatory official and an industry executive familiar with the matter. The move to introduce a 0.4% charge on merchant transactions exceeding 2,000 rupees (approximately US$21) was initially scheduled to take effect on October 15.

UPI, which serves over 500 million users across India, has become a widely adopted digital payments platform used for a broad range of purchases, from small daily expenses to high-value items. The planned fee represented the end of a free payments regime that had been in place, aiming to generate new revenue streams for payment service providers.

The proposed delay would push the fee implementation beyond India’s peak festive season, which runs from October through December and typically sees heightened consumer spending. According to sources who spoke on the condition of anonymity due to the private nature of discussions, the postponement is intended to avoid disrupting retail payment flows during this critical period and to allow additional time for the payments industry to adjust to the new charges.

This possible deferment was first reported by local media and confirmed by the unnamed sources. Efforts to obtain a comment from the National Payments Corporation of India (NPCI), the agency overseeing the UPI platform, were unsuccessful.

The announcement of the delay had a noticeable impact on the stock performance of digital payments companies. Shares of firms such as Paytm and Mobikwik declined by 7.6% and 7.2%, respectively, as investors reacted to the news. Industry participants had viewed the fee as an important opportunity for monetization, with payment providers expected to receive a share of the collected charges.

The final decision on the fee rollout and its timeline remains pending as authorities continue consultations with stakeholders within the payments ecosystem.