Banks Cannot Impose Charges on UPI Payments of up to Rs 2,000, Govt Says
The notification follows Parliament amendments and clarifies that banks and payment providers cannot levy direct or indirect fees on UPI or RuPay payments.
- On Monday, the Finance Ministry barred banks and system providers from imposing direct or indirect charges on UPI transactions up to Rs 2,000 and RuPay-powered Debit Card payments.
- The notification follows parliamentary amendments to the Payment and Settlement Systems Act that sparked rumors about potential fees; the Central Government acted to clarify the legal framework for these digital payment modes.
- UPI now accounts for 84% of India's digital payments in FY2025-26, while Person-to-merchant transactions comprise 63% of total volume with 86% of these payments below Rs 500.
- Finance Minister Nirmala Sitharaman previously emphasized that the legislation does not propose any tax or transaction charge, assuring every Indian consumer will continue making UPI payments without fees.
- Monthly UPI transaction volumes reached a record 2,366 crore in July, while the number of banks live on the platform grew to 741 as of July 2026.
15 Articles
15 Articles
India bars bank charges on UPI payments up to 2,000 rupees
India on Monday notified changes in the Payment And Settlement Act, specifying that banks cannot impose charges on payments via Unified Payments Interface transactions of up to 2,000 Indian rupees ($20.93).
Govt notifies no bank charges on UPI payments up to Rs 2,000
A government gazette notification specified RuPay-powered debit cards and UPI transactions of up to 2,000 Indian rupees as electronic modes of payment, and said no bank or system provider shall impose any direct or indirect charge on a person making or receiving payments through these modes.
India bars bank charges on UPI payments up to ₹2,000
A government gazette notification specifies that no bank or system provider shall impose any direct or indirect charge on a person making or receiving payments through RuPay-powered debit cards and UPI transactions of up to ₹2,000
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