Punjab Newsline | New Delhi
Central Government has announced major relief for millions of digital payment users, clarifying that no charges will be levied on UPI transactions up to ₹2,000 and payments made through RuPay debit cards. The Finance Ministry has prohibited banks and payment service providers from collecting any fee from consumers or merchants on such transactions.
Ministry issued an official notification through the Gazette of India on Monday, enforcing the provision under Section 10A of the Payment and Settlement Systems Act, 2007. The move aims to encourage digital payments and ensure that small-value transactions remain free for users across the country.
Meanwhile, reports suggest that the National Payments Corporation of India (NPCI) may release fresh guidelines within the next week regarding charges on UPI transactions exceeding ₹2,000. Sources indicate that a nominal Merchant Discount Rate (MDR) could be considered for certain large commercial payments to strengthen and sustain the digital payments infrastructure.
The government, however, has reiterated that person-to-person money transfers and transactions carried out by ordinary consumers will continue to remain free of charge. It also dismissed reports claiming that the policy was being altered under external pressure, describing such claims as “false, baseless and misleading.”
According to the Finance Ministry, the primary objective remains to promote digital transactions and support the growth of India’s digital economy by keeping small-value payments accessible and cost-free.
