Fee on UPI P2M payments: How this “small” 0.4% fee can take a bigger bite out of your money

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Starting from October 15, 2026, a new 0.4% transaction fee will be applied to UPI payments exceeding Rs 2,000, while lower amounts and peer-to-peer transfers will still be free. As some merchants may choose to adjust prices accordingly, customers should stay vigilant, checking for any surcharges at checkout to ensure they understand all costs involved. Transparency and quality of service will be vital as these changes are implemented.