Big News for UPI Users

The Centre has announced a major relief for Unified Payments Interface (UPI) users on the occasion of Vinayaka Chavithi. Banks and payment service providers have been directed not to levy any charges on UPI transactions of up to ₹2,000. Charges have also been prohibited on payments of up to ₹2,000 made through RuPay debit cards. The Union Finance Ministry issued an official gazette notification late on September 14, notifying the changes under Section 10A of the Payment and Settlement Systems Act, 2007.

According to the notification, banks and payment service providers such as Google Pay, PhonePe and Paytm cannot directly or indirectly collect any charges on UPI and RuPay debit card payments up to ₹2,000. The rule applies to both senders and recipients. The move is expected to provide relief to small businesses and shopkeepers. The Centre has also clarified that even if Merchant Discount Rate (MDR) is introduced for merchants in the future, it would be applicable only to larger transactions and would remain nominal, helping payment providers strengthen their infrastructure.