The National Payments Corporation of India has announced a reduction in fees for RuPay credit card transactions processed through the Unified Payments Interface, effective April 1, 2026. The third-party application provider fee for consumer payments in the non-industry category will decrease from eight basis points to six basis points, while the industry category fee drops from four basis points to three basis points.
The fee adjustment comes as the credit card on UPI ecosystem matures following the Reserve Bank of India's September 2023 decision to permit pre-sanctioned credit lines on UPI. NPCI issued updated operational guidance in July 2025 instructing banks and payment firms to enable new controls and merchant category configurations for credit line transactions.
Bank of Baroda on March 20, 2026 became the first bank to operationalize a credit line overdraft facility on UPI, launching a five thousand rupee overdraft for women self-help group members holding Pradhan Mantri Jan Dhan Yojana accounts. The facility was introduced at the 25th Central Level Coordination Committee meeting on Rural Development in Hyderabad by Union Agriculture Minister Shivraj Singh Chouhan. This represents the first practical deployment of the credit line on UPI framework for financial inclusion purposes.
Among major payment apps, Paytm has stated that the revised fee structure will have minimal impact on its merchant revenue. The fee changes apply specifically to RuPay credit card transactions on UPI and do not affect the existing zero-MDR policy for standard UPI debit transactions.