Click the Play button to listen to article

The Centre has prohibited banks and system providers from imposing any charges, directly or indirectly, on persons making or receiving payments through RuPay-powered debit cards and the Unified Payments Interface (UPI) for transactions up to Rs 2,000.

The Ministry of Finance, Department of Financial Services, issued a notification on September 14, 2026, under Section 10A of the Payment and Settlement Systems Act, 2007.

The notification, bearing S.O. 5067(E), specifies the following electronic modes of payment:

1. Debit cards powered by RuPay.

2. UPI transactions up to Rs 2,000.

“No bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment by using the electronic modes of payment specified” in the notification, the Ministry stated.

The prohibition covers charges imposed on both the payer and the recipient of a payment. It also extends to charges imposed indirectly, thereby preventing banks and system providers from circumventing the prohibition through indirect fees.

The notification was issued in exercise of the powers conferred by Section 10A of the Payment and Settlement Systems Act, 2007. The provision empowers the Central Government to prescribe electronic modes of payment for which no charges may be imposed on persons making or receiving payments. This provision was inserted as per the Taxation and Other Laws Amendment Act passed by the Parliament in the 2026 Monsoon Session.



Tags: