35 mins ago
Centre Prohibits UPI Charges on Transactions Up To ₹2,000
The government has said that small UPI payments up to ₹2,000 cannot have extra charges.
Banks and payment system providers are not allowed to charge either the person sending or receiving the money.
The same rule applies to payments made with RuPay-powered debit cards.
This rule is based on a section of a 2007 law.
The government is also considering a small fee for some larger payments made to merchants.
It says regular consumers and person-to-person payments would stay free.
The Ministry of Finance denied claims that outside forces caused these possible changes.
The Central government has prohibited banks and system providers from charging for UPI transactions up to ₹2,000.
The ban also covers charges on payments made or received through RuPay-powered debit cards.
The prohibition is issued under Section 10A of the Payment and Settlement Systems Act, 2007.
The government has considered a nominal MDR for some UPI merchant transactions above a specified threshold.
The Ministry of Finance rejected claims that external influences drove the proposed policy changes.
- Who
- The Central government, banks, system providers, and the Ministry of Finance.
- What
- The government prohibited charges on UPI transactions up to ₹2,000 and RuPay-powered debit-card payments.
- Where
- India.
- When
- Why
- The prohibition was issued under Section 10A of the Payment and Settlement Systems Act, 2007; the government said broader changes aim to support a sustainable digital payment infrastructure.
Key facts
- Transaction limit
- UPI transactions up to ₹2,000
- Covered payment method
- Debit cards powered by RuPay
- Affected parties
- Banks and system providers
- Legal basis
- Section 10A of the Payment and Settlement Systems Act, 2007
- Possible future fee
- A nominal Merchant Discount Rate for some UPI merchant transactions above a specified threshold
- Consumer payments
- The government said consumer and person-to-person payments would remain free
- Ministry response
- The Ministry of Finance called external-influence claims unfounded, completely false and misleading
Sources
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