New Delhi, September 15 (TNA) The Finance Ministry has clarified that banks and payment system providers cannot impose any direct or indirect charges on Unified Payments Interface (UPI) transactions of up to ₹2,000.
The notification, issued on September 14 under Section 10A of the Payment and Settlement Systems Act, 2007, specifies UPI transactions up to ₹2,000 as an electronic mode of payment protected from charges. It covers both the payer and the payee.
The government has also included RuPay-powered debit card payments in the no-charge provision. Banks and system providers will not be permitted to levy fees on payments made through RuPay debit cards, according to the notification.
The move is expected to provide relief to consumers and small merchants who depend on UPI for everyday transactions such as grocery purchases, local transport, food orders and utility payments. It also aims to remove uncertainty over the possible reintroduction of charges on small digital payments.
According to data cited in reports, only around 4% of person-to-merchant UPI transactions in 2025-26 were worth more than ₹2,000, although these accounted for nearly two-thirds of the total transaction value.[
The latest notification formally defines the transactions covered by the charge prohibition. It does not mean that every category of UPI transaction above ₹2,000 has automatically become chargeable; any such change would require applicable rules and official decisions.