Banks Cannot Impose Charges on UPI Payments of up to Rs 2,000, Govt Says
- 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.
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No charges on UPI transactions up to Rs 2,000
New Delhi: The government has directed banks and payment system providers not to levy charges on Unified Payments Interface (UPI) transactions of up to Rs 2,000 or on payments made through RuPay debit cards. However, the government has not specified whether charges would be applicable to transactions above Rs 2,000, to be paid by merchants. … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Politics and Top Stori…
<p style="text-align: justify;">Congress has targeted the Modi government over the charges on UPI payments. The central government had issued a new gazette notification on September 14, 2026. In this, UPI transactions up to Rs 2000 have been made a charge-free electronic payment medium. A charge will have to be paid for payments above Rs 2000.</p> <p style="text-align: justify;"><strong>Taking aim at the Modi government</strong></p> <p style="…
Banks can't charge for UPI, RuPay debit card payments up to Rs 2,000: Government
The government has barred banks and payment system providers from charging for UPI transactions of up to Rs 2,000 and RuPay-powered debit card payments. The move leaves scope for fees on higher-value merchant transactions under a possible MDR framework.
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