# No bank charges on UPI payments up to Rs 2,000

2026-09-15T02:28:30+00:00 | Governance | Indian Opinion Desk

Corroboration: 4 independent outlets

The government has notified that no charges can be imposed on UPI transactions of up to Rs 2,000 or on RuPay debit card payments. The finance ministry issued the clarification under Section 10A of the Payment and Settlement Systems Act, specifying these as exempted electronic modes of payment. Finance Minister Nirmala Sitharaman said consumers will continue to make instant digital payments without any transaction fee. The notification paves the way for a possible Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000. The UPI and Services Steering Committee, headed by NPCI, will decide the specific MDR framework. Reports indicate UPI payments above Rs 2,000 could be charged at 40 basis points, with issuing banks receiving the largest share. The NPCI is reportedly working on modalities, with a detailed notification expected in the coming weeks. UPI processed 24.51 billion transactions worth Rs 29.82 trillion in August.

## Indian Opinion Analysis

The notification is a clarification rather than a new policy, but the subtext is the reintroduction of MDR on larger UPI transactions. The government framed the move as consumer protection by capping charges at zero for most UPI transactions. Inc42.com's report, however, focused on the impending MDR framework for higher-value payments and the potential revenue gains for banks and fintech firms, which the government-critical framing did not address directly. The Times of India led with the government's denial of external influence on the policy, a detail other outlets omitted. The balanced reading is that while the notification offers immediate relief to the vast majority of users who transact small amounts, the direction of travel is towards a tiered MDR system. The NPCI's upcoming MDR framework for transactions above Rs 2,000 will determine how that tiered system functions and who ultimately bears the cost.

## Coverage

- inc42.com (neutral report) <https://inc42.com/buzz/govt-notifies-new-rules-no-mdr-for-upi-transactions-under-%E2%82%B92000/>
  Leads with MDR reintroduction, frames zero-MDR as a past subsidy, highlights stock market gains for fintech firms
- economictimes.indiatimes.com (pro government) <https://economictimes.indiatimes.com/news/economy/finance/banks-cannot-impose-charges-on-upi-payments-up-to-rs-2000-govt-says-rupay-debit-card/articleshow/134244408.cms>
  Leads with consumer protection, focuses on no charge for UPI under Rs 2,000, repeats government data and minister's reassurance
- indiatvnews.com (neutral report) <https://www.indiatvnews.com/business/news/govt-bars-bank-charges-on-upi-payments-up-to-rs-2000-and-rupay-debit-card-transactions-latest-updates-2026-09-15-1054236>
  Straight factual report of the notification, no added context or analysis
- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/business/india-business/upi-payments-up-to-rs-2000-to-remain-free-of-charges-govt/articleshow/134250244.cms>
  Leads with consumer exemption, includes government denial of external influence, mentions Reuters as sourcing

Tags: Finance Ministry, Nirmala Sitharaman, NPCI, RuPay, UPI
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