UPI Payment Charges up to ₹2,000 have been clarified by the government amid recent concerns about possible fees.
The Finance Ministry has said banks and payment system providers cannot impose direct or indirect charges on UPI payments up to ₹2,000.
UPI Payment Charges Up to ₹2,000 Remain Free
The Finance Ministry issued a memorandum under the Payment and Settlement Systems Act, 2007, covering UPI payments up to ₹2,000
and payments made using RuPay debit cards as electronic payment methods that are not subject to charges.
The clarification comes after concerns that recent changes to payment-related laws could lead to charges on UPI transactions. The government has said ordinary customers will not have to pay transaction fees for using UPI.
This means customers making UPI payments of up to ₹2,000 will not be charged directly or indirectly by banks or payment system providers.
Relief for People Making Small UPI Payments
The clarification provides relief to people who regularly use UPI for small digital payments. UPI has become a major payment method in India, with transactions continuing to grow rapidly.
According to the Finance Ministry, UPI recorded 2,366 crore transactions in July 2026. The total value of these transactions was around ₹29.9 lakh crore.
The government has also clarified that person-to-person, or P2P, UPI payments will remain free.
What About MDR on UPI Payments?
Finance Minister Nirmala Sitharaman has previously clarified that the amendments to the law are not intended to impose charges on general UPI payments.
The new legal framework creates a provision under which Merchant Discount Rate, or MDR, may be levied on certain large merchant transactions in the future. However, this does not mean that charges will apply to every UPI payment.
For ordinary customers, the government clarification means UPI payments up to ₹2,000 remain free of direct and indirect charges. Payments made through RuPay debit cards covered by the notification are also included.
