Receiving or Paying Under ₹2,000 via UPI or RuPay Debit Card? Why Banks Can’t Charge You

What Changes Under the No-Charge Rule for UPI & RuPay Debit Card Transactions?

On 14 September 2026, the Ministry of Finance (through Notification S.O. 5067(E)) set a clear legal barrier: banks and payment system providers can no longer levy any charges—direct or indirect—on transactions done with RuPay debit cards or through the UPI network, up to ₹2,000 per transaction. This rule applies to both the person sending money (payer) and the one receiving it (payee), sharpening the focus on affordable digital payments for everyone.

Why This Rule Matters: The Real-World Impact

UPI and RuPay debit cards are among the most widely used forms of digital payment in India, especially for everyday purchases and peer-to-peer transfers. Before this notification, despite RBI guidance and government incentives, some confusion persisted—could fees be slipped in by banks or payment processors, especially to merchants, or for small-value transactions? This notification makes the answer legally airtight: no charges at all—hidden or visible—can be imposed for qualifying transactions.

For small businesses, retailers, professionals, and freelancers—many of whom operate on tight margins—this removes both cost worries and gray areas around digital payment acceptance. For consumers, it ensures that paying a shop, sending money to a friend, or completing routine transactions using these modes won’t ever lead to surprise fees for amounts up to ₹2,000.

What Does “Direct or Indirect Charges” Mean?

The rule spells out that neither banks nor system providers (i.e., payment gateways, third-party apps, wallet providers, etc.) can extract any fee on such transactions—not as an explicit charge, nor by indirect means like reduced settlement amounts, back-end deductions, or disguised service fees.

Who Exactly Does This Protect?

• Consumers and businesses paying or accepting via RuPay debit cards (up to ₹2,000 per transaction)
• UPI users for all payments and receipts up to ₹2,000
• Micro and small merchants, clinics, freelancers, delivery partners, and others receiving small-ticket digital payments

Are Merchants Also Covered?

Absolutely. The notification is unambiguous: neither the sender nor the receiver can be charged for these forms of payment up to the threshold.

The Legal Basis: Section 10A of the PSS Act

This blanket no-charge direction is issued under Section 10A of the Payment and Settlement Systems Act, 2007, which empowers the government to regulate and prevent charges for digital payments when considered necessary for broader adoption and protection of users.

Quick Reference Table: What’s Free, What’s Not

What Should You Do if Charges Are Applied?

If you encounter any charges on RuPay debit card or UPI transactions up to ₹2,000 after this rule comes into force, you are within your rights to dispute them. Raise the issue with your bank, payment provider, or through the regulatory complaint channels.

Key Takeaways for Businesses

1. You cannot be charged for accepting payments via UPI or RuPay debit card for up to ₹2,000 per transaction.
2. If you are a service provider, ensure your billing systems have removed any such fees for the covered payment types.
3. Communicate this benefit clearly to encourage more digital payments from customers who may be wary of hidden charges.

Looking Ahead

The Ministry’s move further cements India’s position as a global digital payments leader by supporting cost-free, inclusive digital transactions—especially vital for small businesses and new adopters. Stay informed: this clarity does not extend to higher-value payments or to non-RuPay cards.