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India bars bank fees on UPI payments up to ₹2,000
The Hindu··15 Sept
India on Monday notified Payment and Settlement Act, 2007, changes barring banks from charging on UPI and RuPay debit payments up to ₹2,000. The gazette said no bank or system provider may impose direct or indirect charges on those modes. The move altered an earlier provision that had opened the door to fees on larger UPI transfers. Authorities have not.
Prism
What It Means For You
- Shoppers and vendors paying up to ₹2,000 via UPI or RuPay debit avoid new bank fees on those transfers.
- Small merchants keep zero-charge acceptance for low-value UPI receipts under the notified cap.
- Larger UPI payments remain subject to separate policy decisions not taken in this notification.
What's Happening
- The Hindu and Reuters reported the Monday gazette.
- RuPay-powered debit cards share the ₹2,000 free threshold with UPI.
- A prior rule had prevented fees on digital payments broadly before the amendment.
Payment law tweak
- The notification was published early on September 15 IST.
- Reuters noted ₹2,000 equals about $20.93 in its report.
- Banks had faced restrictions on imposing charges under the earlier wording.
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