India on ​Monday (September 14, 2026) notified changes ‌in the Payment And ​Settlement ⁠Act, 2007, specifying that banks cannot impose charges ‌on payments via ‌Unified Payments ‌Interface (UPI) transactions ⁠of up ⁠to ₹2,000.

A government gazette ​notification ‌specified RuPay-powered debit cards and UPI transactions of ‌up to ​₹2,000 as electronic ⁠modes of payment.

RBI has funds to pay for UPI platform without having to charge merchants, customers

It said ‌no bank or system provider shall impose any direct or indirect ‌charge on ​a person making or receiving payments ⁠through these modes.

UPI stays free for users, vast majority of transactions to remain free for merchants as well, says government

The notification altered ⁠an earlier provision that prevented banks from charging fees on digital payments via India’s popular UPI, paving the ‌way for charges to be imposed on larger transfers.

A final decision on ‌whether to introduce charges, and ‌how they ⁠would be levied, has yet to ⁠be taken.