UPI payments up to Rs 2,000: What users need to know about new no-charge rule

NEW DELHI: People making small digital payments through UPI will not have to pay charges on transactions of up to Rs 2,000 under a new notification issued by the Union Finance Ministry. The Centre has specified RuPay-powered debit cards and UPI transactions of up to Rs 2,000 as electronic modes of payment on which banks or system providers cannot impose any direct or indirect charge. The notification states that no bank or system provider shall impose a charge on a person making or receiving a payment through these specified electronic modes.

The provision covers everyday UPI payments of up to Rs 2,000, while also including payments made using RuPay-powered debit cards. The Rs 2,000 threshold applies specifically to UPI transactions and does not set a corresponding limit for the RuPay debit-card provision.

The notification was issued under Section 10A of the Payment and Settlement Systems Act, 2007.

For UPI users, the key change is that transactions falling within the specified limit cannot attract a charge from banks or system providers, either directly or indirectly.