India bans fees on UPI and RuPay debit card payments up to ₹ 2000
The Indian central government announced that banks and system providers may not charge fees on UPI and RuPay debit card transactions up to ₹ 2000, effective immediately.
By Cited Current Editorial Desk Published · Updated
No charge will be applied to UPI payments up to Rs 2,000.[1][2][4][5]
Banks cannot charge for RuPay debit card payments up to Rs 2,000.[2][4]
UPI payments above Rs 2,000 may no longer be free.[3][4]
What remains disputed or unverified
No disputed central claims are recorded for this story.
The Indian central government issued an immediate order prohibiting banks and system providers from charging any fee on UPI and RuPay debit‑card transactions valued at ₹ 2000, marking a nationwide freeze on such charges.[1][2][4][5]
Policy details and legal basis
The prohibition draws on Section 10A of the Payment and Settlement Systems Act, 2007, which empowers the finance ministry to bar any direct or indirect charges on person‑to‑person payments made via RuPay‑enabled debit cards or UPI up to the ₹ 2000 threshold, ensuring consumers face zero cost for routine digital transfers.[2][4]
Implications for larger transactions and future fees
While low‑value payments stay free, the government has hinted at introducing a modest merchant discount rate for UPI transactions that exceed ₹ 2000, meaning businesses processing larger payments could face a small fee, a shift from the current blanket fee‑free model.[3][4]
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