Archive · 15 Sep 2026
Centre Keeps UPI Payments Up To ₹2,000 Free
The government has said that small UPI payments up to ₹2,000 must remain free.
Banks and payment companies also cannot charge people for using RuPay debit cards.
This protection covers both the person sending money and the person receiving it.
Paying more than ₹2,000 does not automatically mean a customer will be charged today.
However, the new rules create room for possible fees on some larger payments made to businesses.
Such a fee is called a Merchant Discount Rate, or MDR.
The government says people-to-people payments should continue to be free.
It says the discussion is about helping pay for the growing payment system, security and fraud protection.
The government is also developing offline tools such as UPI Tap and Pay for places with unreliable internet.
Banks and payment system providers cannot directly or indirectly charge senders or recipients for UPI transactions up to ₹2,000.
The same protection applies to payments made using RuPay-powered debit cards.
The notification creates a framework for possible charges on some higher-value merchant transactions, but does not automatically impose consumer fees above ₹2,000.
The government says person-to-person UPI payments and consumer transactions will remain free, while a future nominal MDR could apply to selected merchants.
The policy debate focuses on funding payment infrastructure, cybersecurity and fraud prevention as UPI usage expands.
- Who
- The Ministry of Finance, banks, payment system providers, UPI users, merchants and RuPay debit card users.
- What
- The government notified that UPI payments up to ₹2,000 and RuPay debit card payments cannot attract charges from banks or system providers.
- When
- The notification was issued on September 14; related policy discussions took place in August.
- Where
- India's UPI and digital-payments system.
- Why
- To define which payments must remain free while examining how to sustainably fund the expanding digital-payments ecosystem.
Consumer Protection
Ecosystem Sustainability
Consumer charges above ₹2,000
Consumer Protection
Consumers should not face a fee simply because a UPI payment exceeds ₹2,000, and the government has said consumer and person-to-person payments will remain free.
Ecosystem Sustainability
The notification specifically protects payments up to ₹2,000 and may allow a future charging framework for certain higher-value transactions, particularly merchant payments.
Merchant Discount Rate
Consumer Protection
Any future MDR should be limited to selected merchant transactions and should not become an automatic charge deducted from customers.
Ecosystem Sustainability
A nominal MDR could help banks, payment providers and the wider ecosystem recover infrastructure, cybersecurity and fraud-prevention costs.
Who decides future charges?
Consumer Protection
The notification itself does not announce a consumer fee or a final MDR rate.
Ecosystem Sustainability
One report said the UPI and Services Steering Committee, headed by the National Payments Corporation of India, would decide whether charges are imposed and determine the MDR level.
- Legal basis
- The notification was issued under Section 10A of the Payment and Settlement Systems Act, 2007.
- Protected UPI amount
- UPI transactions up to ₹2,000 cannot attract direct or indirect charges.
- Protected parties
- Both the person making and the person receiving a qualifying payment are protected.
- RuPay protection
- Payments made using RuPay-powered debit cards cannot be charged under the notification.
- Possible future MDR
- A nominal Merchant Discount Rate could apply to selected merchant transactions above a specified threshold; no rate has been notified.
- Person-to-person payments
- The government has said all person-to-person UPI transactions will continue to be free.
- UPI scale
- Government data cited in one article put the number of live UPI banks at 741 and monthly transactions at 2,366 crore by July 2026.
Sources
UPI transactions up to Rs 2,000, RuPay debit card payments to remain free, says Centre
UPI payment rules: No charges on transactions up to Rs 2,000, RuPay debit card payments
UPI Payments Up To Rs 2,000 Are Free. Here's What Happens Beyond That
Centre Prohibits Banks, System Providers From Charging For UPI Transactions Up To ₹2,000
UPI payments up to Rs 2,000 to stays free, but bigger transactions may soon cost you: Govt
