Digital Payment / UPI Transactions up to ₹2,000 as Centre Issues Gazette Notification on Digital Payment Charges

New Delhi, Sept 15: In a major relief for millions of digital payment users, the government has clarified that small‑value UPI transactions and RuPay debit card payments will remain free of additional charges.

The Department of Financial Services under the Finance Ministry issued a Gazette notification (S.O. 5067(E)) on September 14, 2026, specifying rules for electronic payments.

Exercising powers under Section 10A of the Payment and Settlement Systems Act, 2007, the Centre directed banks and payment system providers not to levy any fee on certain transactions.

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According to the notification, two categories of payments are exempt from charges:

• UPI transactions up to ₹2,000
• Payments made using RuPay‑powered debit cards

The order strictly prohibits banks or payment apps from collecting direct or indirect fees from individuals making or receiving payments through these specified methods.

Officials said the decision is significant for both consumers and small merchants, as it removes concerns about extra costs on everyday purchases.

By ensuring free access to low‑value digital transactions, the government aims to strengthen India’s cashless economy and encourage wider adoption of digital payments.

For shopkeepers and small businesses, the move means they can accept payments up to ₹2,000 via UPI or RuPay cards without worrying about merchant discount rates (MDR).

For customers, it guarantees that routine transactions — from groceries to small bills — will not attract hidden charges.