The government has clarified that banks cannot charge customers for UPI payments of up to ₹2,000. The same rule applies to payments of up to ₹2,000 made through RuPay debit cards. According to a Finance Ministry notification, banks and payment system providers cannot charge people for making or receiving these payments.
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What has the government said?
The Finance Ministry has made changes under the Payment and Settlement Systems Act. The notification now clearly includes UPI payments of up to ₹2,000 and RuPay debit card payments in the category of electronic payments. This means customers do not have to pay a separate charge when they make these eligible payments.
Will UPI payments remain free?
Yes. The government has said that people will not be charged for making UPI payments. The government also said that all person-to-person (P2P) UPI payments will remain free.
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There will also be no blanket Merchant Discount Rate (MDR) for merchants. MDR is the fee that a merchant may pay when a customer makes a digital payment. The government said that if MDR is introduced for some transactions in the future, it will apply only to selected payments above a certain limit. It also said the charges would be much lower than those for debit and credit card payments.
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Why did the government issue this clarification?
The clarification comes after questions were raised about changes to the Payment and Settlement Systems Act, 2007. There were concerns that the changes could allow charges to be imposed on UPI users. The latest notification aims to make the rules clear.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
