The Central Government has barred banks and system providers from imposing charges on people who make or receive payments through RuPay-powered debit cards and UPI for transactions up to Rs 2,000.
The direction is set out in a Gazette of India notification issued under section 10A of the Payment and Settlement Systems Act, 2007, also identified in the notification as Act 51 of 2007. It covers charges imposed either directly or indirectly.
What the notification covers
The notification identifies 2 electronic payment modes covered by the direction:
- Debit cards powered by RuPay
- UPI transactions of up to Rs 2,000
It states that no bank or system provider may impose a charge on a person making or receiving payment through the specified electronic modes.
The wording covers both parties to a payment. That means the restriction applies to the person sending money as well as the person receiving it, where the transaction falls within the stated scope.
Date and issuing department
The notification is dated September 14, 2026, and appears in an Extraordinary issue of the Gazette of India. It was issued by the Finance Ministry’s Department of Financial Services.
The measure specifically cites section 10A of the Payment and Settlement Systems Act, 2007 as the legal basis for the Central Government’s direction.
What users need to know
For the payment methods and transaction limit named in the notification, banks and system providers are prohibited from adding charges to either side of the payment. The stated limit for UPI transactions is Rs 2,000.
The notification does not state a broader fee rule for UPI transactions above Rs 2,000. It also does not set out a separate charge structure for other payment methods.
Conclusion
The Gazette notification establishes that qualifying RuPay debit card payments and UPI transactions up to Rs 2,000 cannot attract direct or indirect charges for the person making or receiving the payment.
Frequently Asked Questions
Q. What has the Central Government prohibited?
The government has prohibited banks and system providers from imposing direct or indirect charges on specified RuPay debit card and UPI payments.
Q. What is the UPI transaction limit covered?
The notification covers UPI transactions of up to Rs 2,000.
Q. Does the rule cover the person receiving money?
Yes. The wording covers both the person making the payment and the person receiving it.
Q. Which debit cards are covered?
The notification covers debit cards powered by RuPay.
Q. Which law is cited in the notification?
The direction is issued under section 10A of the Payment and Settlement Systems Act, 2007, cited as Act 51 of 2007.
Q. When is the notification dated?
The Gazette of India notification is dated September 14, 2026.
Q. Which department issued it?
It was issued by the Finance Ministry’s Department of Financial Services.
