New Delhi, September 14, 2026 (Yes Punjab News)
The government has clarified that banks and payment system providers cannot impose any direct or indirect charges on Unified Payments Interface (UPI) transactions of up to Rs 2,000.
The Finance Ministry, in a gazette notification issued under Section 10A of the Payment and Settlement Systems Act, 2007, specified RuPay-powered debit cards and UPI transactions of up to Rs 2,000 as electronic modes of payment that cannot attract such charges.
“No bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment” through the specified electronic modes, the notification said.
The move seeks to provide clarity on the applicable rules amid recent discussions over possible charges on UPI transactions following amendments to the Payment and Settlement Systems Act.
The government had also clarified last month that consumers would not be charged for making payments through UPI. It said all person-to-person (P2P) UPI transactions would continue to remain free and there would be no blanket merchant discount rate (MDR) on merchants.
If MDR is introduced in the future, the Finance Ministry said it would apply only to a limited set of merchant transactions above a specified threshold and at a nominal rate. Such charges, it added, would be significantly lower than those applicable to debit or credit card transactions.
The latest notification specifically brings UPI payments up to Rs 2,000 and RuPay-powered debit card payments within the electronic payment modes protected from direct or indirect charges, reinforcing the government’s position on keeping small digital transactions accessible and affordable.
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