No bank charges on UPI payments up to Rs 2,000, Centre notifies rules


The government has notified rules specifying that banks and payment system providers cannot impose charges on UPI transactions of up to Rs 2,000

The government has notified rules specifying that banks and payment system providers cannot impose charges on UPI transactions of up to Rs 2,000, bringing clarity to the recent debate over whether users could have to pay fees for digital payments.

The Ministry of Finance issued a gazette notification on Monday under the Payment and Settlement Systems Act, 2007. It listed UPI transactions of up to Rs 2,000 and debit card payments made through RuPay as electronic payment modes for which customers cannot be charged.

The notification comes after concerns were raised over possible charges on UPI payments following the passage of Taxation and Other Laws (Amendment) Act in Parliament that proposed changes to the legal framework governing payment systems.

However, the notification states that transactions up to Rs 2,000 will remain charge free, leaving scope of levying charges on transactions above this threshold limit.

This is a developing story. Please check back for updates.

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