Archive · 15 Sep 2026
UPI Charges Exempted Up to ₹2,000 as BJP-Congress Clash
The government has said that UPI payments up to ₹2,000 cannot have a transaction fee.
This rule applies to banks and payment system providers.
Payments above ₹2,000 are not covered by the exemption.
That means a Merchant Discount Rate, or MDR, could be charged on larger payments.
One report mentions possible charges from ₹5 to ₹300.
Its accompanying text instead says the range is ₹2 to ₹300.
The reports do not resolve this difference.
The BJP and Congress have argued over the decision.
The main question is whether UPI should be free for all payments.
The Centre has notified that banks and payment system providers cannot charge fees on UPI transactions up to ₹2,000.
UPI payments above ₹2,000 remain outside the exemption, allowing Merchant Discount Rate charges to be introduced.
One report’s headline cites possible MDR charges of ₹5–₹300, while its text says charges range from ₹2 to ₹300.
The notification has triggered a war of words between the BJP and Congress.
The debate questions whether UPI should remain entirely free amid broader political discussions over freebies.
- Who
- The Centre, banks, payment system providers, the BJP, the Congress, and the National Payments Corporation of India (NPCI).
- What
- The Centre has exempted UPI transactions up to ₹2,000 from fees while leaving larger transactions outside the exemption.
- Why
- To define which UPI transactions cannot be charged, while potentially allowing MDR charges on payments above ₹2,000.
Congress Criticism
Government and BJP Position
Whether UPI should be fully free
Congress Criticism
Congress has hit back and questioned why UPI should not be free amid discussions over government freebies.
Government and BJP Position
The government has guaranteed no fees for UPI transactions up to ₹2,000 while leaving larger payments outside the exemption.
Impact of charges on larger payments
Congress Criticism
The debate raises concerns about whether possible MDR charges above ₹2,000 could affect users or payments.
Government and BJP Position
The notification limits the fee protection to transactions up to ₹2,000; the reports do not state that charges will definitely be imposed on every larger payment.
- Fee-free threshold
- UPI transactions up to ₹2,000
- Transactions above threshold
- Payments above ₹2,000 are outside the exemption
- Potential charge
- Merchant Discount Rate, or MDR
- Reported MDR range
- The headline cites ₹5–₹300; the article text cites ₹2–₹300
- Affected parties
- Banks and payment system providers
- Political response
- The notification triggered a war of words between the BJP and Congress
- Central question
- Whether UPI should remain free for all transaction amounts
