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India Bars Bank Charges on UPI Payments Up to ₹2,000
India has made a rule about certain digital payments.
Banks cannot charge people for UPI payments worth up to ₹2,000.
This applies to both the person sending money and the person receiving it.
The rule also covers debit cards powered by RuPay.
Banks and payment-system providers cannot add these charges directly or indirectly.
The change was notified under India’s Payment and Settlement Systems Act.
The government had already said that UPI payments would remain free for consumers.
Person-to-person UPI payments will also continue to be free, according to the Ministry of Finance.
The Indian government notified changes to the Payment and Settlement Systems Act, 2007, on Monday.
Banks and system providers cannot directly or indirectly charge for UPI transactions up to ₹2,000.
The rule covers both people making and receiving payments through the specified modes.
RuPay-powered debit cards were also included as a protected electronic payment mode.
The Ministry of Finance had previously said consumers would not face UPI transaction charges and person-to-person payments would remain free.
- Who
- The Government of India, through the Ministry of Finance, and banks and payment-system providers.
- What
- A notification bars direct or indirect charges on UPI transactions up to ₹2,000 and on payments made through RuPay-powered debit cards.
- Where
- India, through a government gazette notification.
- When
- The notification was issued on Monday and was published on September 14, 2026.
- Why
- To specify protected electronic payment modes under the Payment and Settlement Systems Act, 2007 and prevent charges on those transactions.
Key facts
- UPI transaction limit
- ₹2,000
- Protected payment modes
- RuPay-powered debit cards and UPI transactions up to ₹2,000
- Prohibited charges
- Banks and system providers cannot impose direct or indirect charges
- Covered parties
- People making or receiving payments
- Legal basis
- Payment and Settlement Systems Act, 2007
- Earlier government position
- The Ministry of Finance said consumers would not face UPI transaction charges
- Person-to-person payments
- The Ministry said these transactions would continue to be free
Sources
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