Banks cannot impose charges on UPI payments of up to Rs 2,000, govt says

The Central government on Monday announced that banks cannot impose any charges on Unified Payments Interface (UPI) transactions of upto Rs 2,000 or debit card payments by RuPay card.

The Finance Ministry notified changes in the Payment and Settlement Systems Act to help clarify the rumours on upcoming charges on UPI transactions as the government specified RuPay-powered debit cards and UPI ⁠transactions of up to Rs 2,000 as “electronic modes of payment,” and said no bank or system ‌provider shall impose any direct or indirect charge ⁠on a person making or receiving payments through these modes.