Big relief for UPI users! No charges on payments up to ₹2,000; government clarifies
Major news has emerged regarding UPI payments; the government has cleared up public confusion concerning charges. The Ministry of Finance has clarified that no charges will be levied on payments of up to ₹2,000.
The government has provided significant relief to those making payments via UPI. It has finally resolved the confusion surrounding charges that had persisted for several days. The government has made it clear that banks or payment system providers cannot impose any direct or indirect charges on UPI payments up to ₹2,000. This rule also applies to payments made using RuPay debit cards.
Government Clarification
On Monday, the Ministry of Finance issued a memorandum under the Payment and Settlement Systems Act, 2007. This memorandum categorizes UPI payments up to ₹2,000 and payments made via RuPay debit cards as electronic payment modes exempt from charges. The government issued this clarification amidst growing public concern—following recent changes in payment-related regulations—that fees might be imposed on UPI payments in the future.
The Finance Ministry issued a notification under the Payment and Settlement Systems Act, 2007, stating that UPI transactions up to ₹2,000 and RuPay debit card payments cannot be charged. Banks and payment providers cannot levy direct or indirect fees. Charges on UPI transactions… pic.twitter.com/Roy1cZhwty
— IANS (@ians_india) September 14, 2026
Relief for the General Public
Furthermore, the government has clarified that ordinary customers will not have to pay any transaction fees for using UPI. Consequently, the general public, who rely on UPI for daily payments, can breathe a sigh of relief.
Relief for Small-Value Payers
This new notification from the Ministry of Finance brings greater clarity for customers making small digital payments. Essentially, if a customer makes a UPI payment of up to ₹2,000, neither the bank nor the payment system provider can levy transaction charges, whether directly or indirectly. Digital payments are growing rapidly in India. According to the Ministry of Finance, 2,366 crore transactions were conducted via UPI in July 2026, with a total value of approximately ₹29.9 lakh crore.
No charges on UPI
Meanwhile, Finance Minister Nirmala Sitharaman had already clarified that the legislative amendments are not intended to impose charges on standard UPI payments. The new law establishes a framework under which an MDR (Merchant Discount Rate) could potentially be applied to certain select large merchant transactions in the future. However, this charge will not apply to all UPI payments; person-to-person (P2P) UPI payments will remain free.
