UPI payments of up to ₹2,000 will remain free, with banks and payment system providers barred from imposing direct or indirect charges on such transactions.
The government has also clarified that RuPay debit card payments below ₹2,000 will continue to remain free. The move follows amendments to the Payment and Settlement Systems Act, which removed the earlier statutory restriction on prescribing charges for certain digital payment transactions.
The clarification comes amid discussions over the possible introduction of Merchant Discount Rate (MDR) on selected UPI transactions. The government has indicated that any future MDR would be limited to certain merchant transactions above a specified threshold, while consumers would continue to use UPI without transaction charges.
The decision is aimed at maintaining affordable digital payments while supporting the long-term sustainability and growth of India’s rapidly expanding digital payments ecosystem.
