Banks cannot impose charges on UPI payments of up to Rs 2,000, govt says
Banks will not impose charges on UPI payments up to two thousand rupees. Debit card payments made using RuPay cards will also be free of charges. The Central Government announced this new regulation on Monday. This directive applies to all banks and system providers. The government has specified these electronic payment modes under a new act.
The Central government has announced that banks cannot charge for Unified Payments Interface (UPI) transactions of up to Rs 2,000 or for debit card payments using RuPay cards. The Finance Ministry issued a notification based on changes to the Payment and Settlement Systems Act, specifying UPI transactions up to Rs 2,000 and RuPay-powered debit cards as electronic payment modes without any charges.
Banks and payment service providers are prohibited from imposing any direct or indirect fees on consumers using these specified electronic payment methods. This announcement comes a month after Parliament passed amendments to the Act, allowing banks to charge for UPI and other digital payment modes. Finance Minister Nirmala Sitharaman confirmed that UPI remains free for consumers, and the government maintains that no tax or transaction charges will be imposed on UPI or RuPay card transactions.
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