Govt Keeps UPI Free Up to ₹2,000, Opens Door for Charges on Higher Transactions
What Happened
The government has notified changes to the Payment and Settlement Systems Act, explicitly prohibiting banks and payment providers from levying any direct or indirect charges on UPI transactions of up to ₹2,000 and on RuPay debit card payments. The notification follows amendments passed by Parliament last month, which removed the earlier legal framework linking zero charges to specific provisions of the Income Tax Act.
Key Takeaways
Consumers will continue to enjoy free UPI payments up to ₹2,000, but the legal changes give the government flexibility to allow charges on certain higher-value transactions in the future if it chooses. No charges on transactions above ₹2,000 have been announced yet, but the new framework creates the possibility for such a move.