SBI, holding 25% of India’s debit‑card base, will collect the largest slice of the UPI fee pool, according to a recent regulatory disclosure.
Under the new split, every ₹2,000 a merchant pays ₹8 in fees. The issuing bank receives ₹3.20, the acquiring bank ₹2.40, the app ₹1.60 and the processing bank ₹0.80.
Bank of Baroda, HDFC, Canara and Union trail with 8%, 6.2%, 5.9% and 5.6% market shares, positioning them as secondary beneficiaries.
Amrish Rau, CEO of Pine Labs, said the model "improves investor sentiment and gives the fintech ecosystem a significant boost".
NPCI will also collect a small interchange fee, while third‑party apps will pay a portion of their earnings to the banks that process their transactions.
The fee structure, which will be effective from the next UPI audit cycle, is expected to reshape revenue streams across the payment‑service sector.