Banks and payment system providers cannot impose charges on Unified Payments Interface(UPI) transaction of up to Rs 2,000.
No bank charges on UPI payments up to Rs 2,000: The central government on Monday has barred banks and payment system providers from levying charges on Unified Payments Interface(UPI) transaction of up to Rs 2,000. Apart from this customers will not be charged any fees on payments made through RuPay Debit Card.
According to finance Ministry, this legal restriction is imposed under Section 10A of the Payment and Settlement Systems Act, 2007. This prohibits any direct or indirect charges from being levied on anyone making or receiving payments using debit cards and UPI up to Rs 2,000. The initiative is aimed at facilitating the digital economy. This move is expected to provide relief to customers and small businesses, allowing them to continue making small UPI and RuPay payments of up to ₹2,000 without any additional charges.
Last month, the central government had clarified that person-to-person (P2P) payments through UPI would remain completely free for common consumers. The government had clarified that merchants would not be subject to any blanket Merchant Discount Rate (MDR).
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