Govt. bars bank charges on payments up to ₹2,000 via UPI, RuPay-powered debit cards
The Indian government has issued a notification prohibiting banks from imposing charges on UPI and RuPay debit card transactions up to ₹2,000. This move aims to promote digital payments by ensuring small-value transactions remain free for users.
Why it matters
This policy directly affects the cost structure of digital finance for millions of Indian consumers and small businesses.
India on Monday (September 14, 2026) notified changes in the Payment And Settlement Act, 2007, specifying that banks cannot impose charges on payments via Unified Payments Interface (UPI) transactions of up to ₹2,000.
A government gazette notification specified RuPay-powered debit cards and UPI transactions of up to ₹2,000 as electronic modes of payment.
It said no bank or system provider shall impose any direct or indirect charge on a person making or receiving payments through these modes.
The notification altered an earlier provision that prevented banks from charging fees on digital payments via India’s popular UPI, paving the way for charges to be imposed on larger transfers.
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