The National Payments Corporation of India (NPCI) on December 18, 2025, issued the notification regarding the Implementation of Switching Fee Rebate for UPI URCS Back-Office System.
The following has been stated namely: -
• NPCI has been providing a 50% rebate on net switching fees for UPI P2M transactions
• It has now been decided to apply the rebate effect on a daily basis by enabling daily reversal of the switching fee in every settlement cycle.
• Necessary system enhancements have been implemented in URCS, and the new functionality will be effective from February 01, 2026.
• Member banks are advised to make required system changes, inform concerned officials, and note that this arrangement will continue until further notice or withdrawal of the rebate.
[Notification No. NPCI/UPI/OC No. 230/2025-2026]
