UPI Payments Beyond INR 2,000 May Attract Charges, NPCI Guidelines Soon: Report
NPCI may issue guidelines on charges for UPI transactions above INR 2,000 within a week, sources told CNBC-TV18. This follows the government's notification specifying UPI payments up to INR 2,000 and RuPay debit card transactions as exempt from bank charges under the amended Payment and Settlement Systems Act.
The National Payments Corporation of India (NPCI) may issue detailed guidelines on charges for UPI transactions above INR 2,000 within the next one week, sources told CNBC-TV18. The upcoming guidelines are expected to be based on recommendations from the UPI Services Steering Committee, which is headed by NPCI, according to the report.
The development follows the government's notification of changes to the Payment and Settlement Systems Act, which specified UPI transactions up to INR 2,000 and payments made through RuPay powered debit cards as electronic modes of payment that cannot attract bank charges.
What the Finance Ministry Notification Says
According to the Finance Ministry's gazette notification, no bank or payment system provider is allowed to impose direct or indirect charges on individuals making or receiving payments through the specified electronic modes.
The notification clearly states that no charges can be levied on RuPay debit card transactions, and the same protection applies to UPI transactions up to INR 2,000. UPI Charges: No Fees on Transactions up to INR 2,000, RuPay Debit Cards, Says Government.
Background: Payment and Settlement Systems Act Amendments
The latest development follows amendments to the Payment and Settlement Systems Act passed by Parliament last month. These amendments empowered the central government to designate electronic payment modes that would remain shielded from charges, while also opening the door for changes to the zero MDR framework governing UPI and RuPay transactions.
The move comes against the backdrop of an ongoing debate around the long term sustainability of the UPI ecosystem and the role of Merchant Discount Rate (MDR) in supporting it. New UPI Capabilities Unveiled in Mumbai: Understanding 'Tap & Pay' and AI-Powered MyUPI.
Government's Stand on Consumer Charges
Finance Minister Nirmala Sitharaman has maintained that MDR is applicable to merchants and not consumers, adding that such revenue could help banks and fintech firms invest further in payment infrastructure and security.
The government has repeatedly clarified that consumers will not be charged for UPI transactions. Sitharaman had earlier said, 'Will consumer pay any UPI charge, No,' noting that UPI has remained free for consumers since its launch and will continue to remain so.
(The above story first appeared on LatestLY on Sep 15, 2026 01:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
