Government Bars Fees on UPI Payments Up to Rs 2,000 and RuPay Debit Cards
Public Lokpal
September 15, 2026
Government Bars Fees on UPI Payments Up to Rs 2,000 and RuPay Debit Cards
The Ministry of Finance has officially notified under the Payment and Settlement Systems Act that banks and payment providers cannot levy direct or indirect charges on UPI transactions valued up to Rs 2,000 and RuPay-powered debit card payments.
This regulatory clarification follows recent legislative amendments that sparked discussions about the future framework of digital transaction costs.
By officially setting the protection threshold at Rs 2,000, the government aims to safeguard everyday retail micro-transactions and peer-to-peer transfers from extra costs.
While everyday users and small-value purchases remain entirely free from fees, the legal framework simultaneously enables structural considerations for high-value merchant transactions to ensure the long-term viability of India's digital payments infrastructure.