New Delhi, Oct. 11 -- The central government announced in September that it would end more than six years of zero-fee UPI usage by introducing a 0.4% surcharge on merchant transactions above Rs.2,000, capped at Rs.300 for payments of Rs.75,000 and above.

The decision led to immediate pushback from local business owners, who argued that the extra charge could eat into their margins on products and services.

The UPI network powers payments for more than 500 million consumers purchasing everyday items, from street tea and food to smartphones and home appliances, across Asia's third-largest market.

While the government has assured consumers that UPI transactions will remain free, as they have been so far, concerns persist that merchants ma...