Banks Cannot Impose Charges on UPI Payments of up to Rs 2,000, Govt Says
- On September 14, the government issued a notification prohibiting banks and providers from levying charges on Unified Payments Interface or RuPay debit card transactions of up to Rs 2,000.
- This follows an August 13 amendment to the Payment and Settlement Systems Act, 2007, which established an enabling framework for imposing a Merchant Discount Rate on electronic payment modes.
- Congress leader Rahul Gandhi and Jairam Ramesh alleged the move creates a framework for fees on transactions above Rs 2,000, questioning if the government aims to "appease" President Donald Trump.
- Finance Minister Nirmala Sitharaman rejected these claims, stating that the Merchant Discount Rate applies only to merchants, not end-users, to support banks and fintech companies in infrastructure investment.
- While transactions over Rs 2,000 account for just 5% of volume, they represent nearly 65% of total UPI value, fueling opposition concerns that costs could eventually impact ordinary consumers.
75 Articles
75 Articles
Modi Govt Paving Way For UPI Fees, Surrendering To US Pressure: Congress Attacks BJP
The Congress has targeted the Modi government following a notificaiton on UPI transactions with Rahul Gandhi alleging that it has quietly paved the way for imposing fees on such transactions and that a 'compromised' Prime Minister Narendra Modi was 'once again surrendering' to American pressure.
Banks’ Panel to Soon Decide on UPI Merchant Charges Above Rs 2,000
According to sources, the committee would soon take decision on Merchant Discount Rate (MDR) on UPI transaction above Rs 2,000 based on various factors including self-sustainability and market expansion.
‘Quietly opened the door to UPI fees’: Rahul Gandhi slams Modi govt, Centre defends notification
Rahul Gandhi accused the Modi government of opening the door to UPI transaction fees, alleging US pressure behind the move. The Centre's notification bars charges on UPI/RuPay payments up to ₹2,000, while citing cybersecurity and infrastructure costs as reasons for the broader MDR framework.
'Compromised PM Modi again surrendering to US pressure': Rahul on govt's UPI move
New Delhi, Sep 15 (PTI) Congress leader Rahul Gandhi on Tuesday alleged that the Modi government has quietly paved the way for imposing fees on UPI transactions and that a “compromised” Prime Minister Narendra Modi was “once again surrendering” to American pressure. The Congress raised questions over the government’s notification on UPI transactions, claiming that […]
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="…
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