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Mains issueGS-3News & Analysis15 September 2026

Govt. bars bank charges on payments up to ₹2,000 via UPI, RuPay-powered debit cards

Source: thehindu.comOriginal report

Understand the issue · 1/2

Why now

01

The Indian government has amended the Payment And Settlement Act, 2007, to prohibit banks from imposing charges on Unified Payments Interface (UPI) transactions up to ₹2,000 and payments made via RuPay-powered debit cards. This move ensures these digital payment modes remain free for users and most merchants, with the Reserve Bank of India (RBI) having funds to support the UPI platform. The notification also indicates a potential for charges on larger UPI transfers in the future, though a final decision is pending.

Core issue

02

The Indian government has amended the Payment And Settlement Act, 2007, to prohibit banks from imposing charges on Unified Payments Interface (UPI) transactions up to ₹2,000 and payments made via RuPay-powered debit cards. This move ensures these digital payment modes remain free for users and most merchants, with the Reserve Bank of India (RBI) having funds to support the UPI platform. The notification also indicates a potential for charges on larger UPI transfers in the future, though a final decision is pending.

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