UPI and RuPay Debit Card Payments Up to Rs 2,000 to Remain Free

The central government has confirmed that Unified Payments Interface (UPI) transactions and RuPay debit card payments up to Rs 2,000 will continue to be free of charge. This decision was announced under the powers granted by the Payment and Settlement Systems Act, 2007, ensuring no fees are imposed on these small-value electronic payments.

In exercise of the powers conferred by section 10 A of the Payment and Settlement Systems Act, 2007, the government specified that electronic modes of payment including debit cards powered by RuPay and UPI transactions up to Rs 2,000 shall not attract any charges. The government clarified that no bank or system provider shall impose, directly or indirectly, any fee on persons making or receiving payments through these modes.

Experts have supported this move, emphasizing the importance of keeping small-value digital transactions free to encourage wider adoption. The government also stated that all person-to-person transactions will continue to be free of charge, reinforcing its commitment to promoting digital payments.

Charges may apply only for transactions above a certain threshold and at a nominal rate, but payments up to Rs 2,000 remain exempt. This measure aims to facilitate ease of digital payments for everyday transactions without burdening users with additional costs.