Banks cannot levy charges on UPI transactions up to Rs 2,000, Govt says
Economic Times 1 hr ago·14 Sept 2026, 6:27 pm
The government has officially prohibited banks and payment system providers from levying any direct or indirect charges on UPI transactions up to Rs 2,000. This move effectively puts a halt to the long-speculated return of Merchant Discount Rate (MDR) for low-value transactions, ensuring that digital payments remain free for consumers.
This decision is a significant win for retail investors and the broader economy, as it encourages higher usage of digital payments and removes a potential friction point for small-value transactions. It also aligns with the government's push for a less-cash society. Investors should watch for any future policy announcements regarding MDR for transactions exceeding this threshold.
Excerpt from Economic Times
Published On Sep 14, 2026 at 11:57 PM IST The government on Monday notified that banks and system providers cannot impose any direct or indirect charge on Unified Payments Interface (UPI) transactions of up to Rs 2,000 and payments made using RuPay-powered debit cards. In a gazette notification issued on September 14,…Read the original at Economic Times
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