'No bank charges on UPI payments up to Rs 2,000'

The Central government has announced that banks are prohibited from charging fees on Unified Payments Interface (UPI) transactions of up to Rs 2,000 or debit card payments through RuPay cards. The Ministry of Finance issued a notification, confirming that no bank or system provider will impose any direct or indirect charges on individuals using these electronic payment modes.

This follows amendments to the Payment and Settlement Systems Act, allowing banks and payment service providers to levy charges on other digital payment modes. Since its launch, UPI has remained free for consumers, and the government aims to maintain this affordability. The notification specifies that debit card-powered RuPay and UPI transactions up to Rs 2,000 are exempt from charges, reinforcing UPI's role as a cost-effective payment system.