New process for disputes over wrong UPI merchant categories
NPCIIn effectApplies from 14 Oct 2026
By Clarifee teamAnnounced Last checked
NPCI set up a way for banks to raise and settle disputes when a merchant’s category code (MCC) is wrong, including settling the difference in interchange fees. It covers UPI payments that carry interchange fees, except RuPay credit card on UPI.
What it means for you
This is a process between banks for settling interchange fees when a merchant category is wrong. The circular says nothing about the fee merchants pay.
Official sources
Related
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- UPI merchant fee set: 0.4% above ₹2,000, capped at ₹300NPCI and Ministry of Finance · 15 Sept 2026
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