Banks cannot impose charges on UPI payments of up to Rs 2,000, govt says
Economic Times 2 hrs ago·14 Sept 2026, 4:08 pm
The government has clarified that banks and payment system providers cannot levy any charges on UPI transactions valued up to Rs 2,000. This directive, issued under the Payment and Settlement Systems Act, also extends to RuPay debit card payments below this threshold. The move effectively bans both direct and indirect fees on these specific digital payment methods.
This policy change is significant for retail investors as it removes a potential cost barrier for everyday digital transactions. By ensuring that small-value payments remain free, the government aims to further encourage the adoption of digital financial services. This supports the broader narrative of a cashless economy and could positively impact the usage volume of digital payment platforms.
Investors should monitor the long-term impact on the digital payments ecosystem. While this move benefits consumers, it may compress margins for banks and payment companies that previously relied on small transaction fees. Market participants will be watching for any official statements from major payment networks regarding the implementation of this regulation.
Excerpt from Economic Times
The government has announced no charges on UPI transactions up to Rs 2,000. RuPay debit card payments below this amount will also remain free. This clarification follows amendments to the Payment and Settlement Systems Act. Banks and system providers cannot levy any direct or indirect charges. Consumers will continue…Read the original at Economic Times
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