Govt. bars bank charges on payments up to ₹2,000 via UPI, RuPay-powered debit cards

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A government gazette ​notification ‌specified RuPay-powered debit cards and UPI transactions of ‌up to ​₹2,000 as electronic ⁠modes of payment. File photo for representational purposes only. | Photo Credit: Allen Egenuse J

India on ​Monday (September 14, 2026) notified changes ‌in the Payment And ​Settlement ⁠Act, 2007, specifying that banks cannot impose charges ‌on payments via ‌Unified Payments ‌Interface (UPI) transactions ⁠of up ⁠to ₹2,000.

A government gazette ​notification ‌specified RuPay-powered debit cards and UPI transactions of ‌up to ​₹2,000 as electronic ⁠modes of payment.

It said ‌no bank or system provider shall impose any direct or indirect ‌charge on ​a person making or receiving payments ⁠through these modes.

The notification altered ⁠an earlier provision that prevented banks from charging fees on digital payments via India’s popular UPI, paving the ‌way for charges to be imposed on larger transfers.

A final decision on ‌whether to introduce charges, and ‌how they ⁠would be levied, has yet to ⁠be taken.

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