No Charges On UPI Payments Up To Rs 2,000, Government Issues Big Order On RuPay Debit Cards

New Delhi: If you make payment through UPI or RuPay debit card, then there is important news for you. The central government has taken a big decision regarding small digital payments. Now no charges will be levied on UPI transactions up to Rs 2,000 and payments made through RuPay debit cards.

There was a discussion going on for some time regarding charges on UPI transactions. After the bill was presented in Parliament, the government had also clarified that no fee will be charged from the common people on small digital payments. Now this arrangement has been clarified in the Gazette notification issued by the Department of Financial Services of the Finance Ministry on 14 September 2026.

What is the new rule on UPI payment up to Rs 2,000?

According to the notification, banks or payment system providers will not be able to charge any fee on UPI transactions up to Rs 2,000. This restriction will apply to both direct and indirect charges.

That means, if a customer pays up to Rs 500, Rs 1,000 or Rs 2,000 through UPI, no separate fee will be charged for this transaction.

Will any charge be taken from the shopkeeper also?

It has also been made clear in the government order that no fee can be charged on such payment, not only from the customer but also from the person or businessman receiving the payment.

This means that on UPI payments up to Rs 2,000, both the customer and the merchant will not have to pay any payment charges.

What benefits will you get on payment through RuPay Debit Card?

No additional charges related to payment will be levied even if RuPay Debit Card is used for payment up to Rs 2,000. This decision of the government is expected to promote small value digital payments.

For example, if a customer makes a payment of Rs 1,500 through a RuPay debit card at a shop, no separate fee will be charged to the customer or the shopkeeper for this payment.

How will small shopkeepers get the benefit?

Small businessmen can get the most benefit from this decision. For grocery shopkeepers, street vendors and small businessmen, charges on low-value digital payments may impact their earnings.

This step of the government can encourage small businessmen to adopt digital payments. Also, it will remain easy for customers to make small payments and without any extra charges.

Will there be charges on UPI payments above Rs 2,000?

The situation is not completely clear here yet. In the new notification, it has been clearly stated that there will be no charges on UPI payments up to Rs 2,000. But there is no clear rate mentioned in this notification as to how much will be charged or whether it will be charged on payments above Rs 2,000.

Therefore, the issue of charges on large transactions will depend on the relevant rules and the fee system to be decided in future.

What is the government's stance regarding MDR charges?

There was a lot of discussion recently regarding MDR i.e. Merchant Discount Rate on UPI. It was said by the government that if the MDR system is implemented in future, it can be limited to some business transactions exceeding the prescribed limit.

The government had also clarified that this burden will not be put on the normal payments of the common people and the system of keeping person-to-person payments free will continue.

At present, the new notification has clarified the situation of not charging charges on UPI and RuPay debit card payments up to Rs 2,000.