# Govt bars UPI charges up to Rs 2,000, opens door for MDR on larger payments 2026-09-15T08:28:03+00:00 | Governance | Indian Opinion Desk Corroboration: 8 independent outlets The government has barred banks and payment system providers from charging fees on Unified Payments Interface (UPI) transactions up to Rs 2,000 and RuPay debit card payments, under a notification issued on September 14. The order follows the Taxation and Other Laws (Amendment) Act, 2026, which removed the blanket zero-MDR protection and empowered the Centre to specify which transactions remain charge-free. The notification does not impose a Merchant Discount Rate (MDR), but leaves the NPCI-led committee to decide on fees for transactions above Rs 2,000. Nearly 96% of UPI transactions by volume fall within the Rs 2,000 threshold, according to industry data. The Congress accused the government of setting the stage for UPI charges and questioned whether the move aims to open digital payments to American firms. The Finance Ministry has said no charges will apply to consumers and any future MDR will be nominal and confined to select merchant transactions. The RBI and NPCI are meeting lenders on Tuesday, with regulators reportedly leaning toward a 0.4% charge on large merchant payments. ## Indian Opinion Analysis The pro-government framing (rediff.com, news.abplive.com, timesnownews.com) emphasizes the protection of over 96% of UPI transactions and the government's repeated assurance that consumers will not be charged. The critical framing (newindianexpress.com) foregrounds Congress' allegation that the notification sets the stage for future fees and opens digital payments to US firms. The economic framing (economictimes.indiatimes.com) reports that regulators are leaning toward a 0.4% MDR on large merchant transactions and estimates Rs 5,000-10,000 crore annual industry benefit. The notification does not impose a fee, it designates which transactions remain free while the NPCI-led committee decides the MDR structure. The RBI and NPCI meet lenders on Tuesday to discuss the rate and revenue split. ## Coverage - rediff.com (neutral report) Leads with no charges on small transactions and government rationale for future charges - medianama.com (neutral report) Technical focus on legal mechanism enabling MDR for transactions above Rs 2,000 - news.abplive.com (neutral report) Leads with free UPI up to Rs 2,000 and FAQ addressing user concerns - economictimes.indiatimes.com (neutral report) Leads with consultation on charging large UPI transactions and 0.4% rate leaning - deccanherald.com (neutral report) Brief factual report on notification and MDR question - newindianexpress.com (government critical) Leads with Congress' criticism that stage is set for UPI charges and US appeasement - timesnownews.com (neutral report) Leads with free UPI up to Rs 2,000 covering 96% of transactions by volume - nationalheraldindia.com (neutral report) Explains that UPI above Rs 2,000 is not automatically chargeable and MDR applies only to select merchants Tags: Finance Ministry, Nirmala Sitharaman, NPCI, RBI, RuPay, UPI Canonical: https://indianopinion.org/upi-transactions-up-to-rs-2000-protected-from-charges/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/upi-transactions-up-to-rs-2000-protected-from-charges/#story-in-brief