New Delhi, Sept. 15 -- The Unified Payments Interface (UPI) ecosystem could be heading for a major change as regulators consider introducing charges on some higher-value merchant transactions, while keeping small payments and person-to-person transfers outside the fee framework.

The Finance Ministry has notified that UPI transactions of up to Rs.2,000 cannot be subjected to any direct or indirect charge by banks or system providers. The move effectively protects the vast majority of UPI transactions from charges, as around 96% of transactions by volume fall within the Rs.0- Rs.2,000 band.

In a Gazette notification issued on September 14, the Department of Financial Services under the Ministry of Finance listed two electronic payment mod...