No bank charges on UPI payments of up to Rs 2,000: Govt
The Indian government has officially prohibited banks and payment providers from imposing charges on UPI transactions up to Rs 2,000. This policy aims to promote the sustainability and growth of India's digital payment ecosystem by keeping consumer transactions free.
Why it matters
This regulation ensures that digital payments remain accessible and cost-effective for the general public, supporting India's transition to a cashless economy.
Government on Monday notified that banks and payment system providers cannot impose direct or indirect charges on Unified Payments Interface (UPI) transactions of up to Rs 2,000 or payments made using RuPay debit cards.The notification was issued under Section 10A of the Payment and Settlement Systems Act, 2007.“In exercise of the powers conferred by section 10 A of the Payment and Settlement Systems Act, 2007 (51 of 2007), the Central Government hereby specifies the following electronic modes of payment, namely: (i) Debit Card powered by RuPay; and (ii) Unified Payments Interface (UPI) transactions upto Rs.
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