What happened
The Centre notified S.O. 5067(E) on 14 September 2026 under Section 10A of the PSS Act 2007, specifying RuPay debit cards and UPI transactions up to Rs 2,000 as no-charge payment modes.
The finance ministry has notified that RuPay debit cards and UPI payments up to Rs 2,000 cannot attract any bank or system-provider charge.
Gazette notification S.O. 5067(E), issued on 14 September 2026 under Section 10A of the PSS Act 2007, protects both the person paying and the person receiving.
The move follows the Lok Sabha's 6 August 2026 passage of the Taxation and Other Laws (Amendment) Bill 2026, which amended Section 10A of the PSS Act.
For UPI payments above Rs 2,000, nothing is final yet. The NPCI-led UPI and Services Steering Committee will decide on any MDR, with a 0.25% to 0.4% range under discussion.
How we got here
From Bill passage to gazette: the steps that made Rs 2,000 UPI explicitly free.
- 6 Aug 2026: Lok Sabha passes the Taxation and Other Laws (Amendment) Bill 2026, amending Section 10A of the PSS Act.
- 14 Sept 2026: Finance ministry issues gazette S.O. 5067(E) naming RuPay debit cards and UPI up to Rs 2,000 as no-charge modes.
- 15 Sept 2026: Notification reported; MDR on payments above Rs 2,000 still with the NPCI-led steering committee.
What this means for you
Pay by UPI up to Rs 2,000 or swipe a RuPay debit card and no bank can charge you or the merchant a fee. For bigger UPI payments, any MDR will arrive only through a future notification.
Why it matters for me
Banks and system providers cannot levy any direct or indirect fee on senders or receivers using these two modes, keeping small digital payments free.
Money
Upi Users
UPI payments up to Rs 2,000 and RuPay debit card transactions stay free for both sender and receiver.
Work
Small Merchants
Small merchants keep zero-cost acceptance for low-value UPI, protecting daily kirana and street-stall collections.
Daily Life
Banking Policy Readers
Payments above Rs 2,000 may later attract an MDR of 0.25% to 0.4%; the rate, scope and date are still undecided.
What to remember
UPI stays free up to Rs 2,000; charges on bigger payments are still undecided.
Govt bars all bank charges on UPI up to Rs 2,000 and RuPay debit cards via gazette S.O. 5067(E). MDR above Rs 2,000 still undecided.
Verified sources (7)
Govt. bars bank charges on payments up to Rs 2,000 via UPI, RuPay-powered debit cards
↗No Charges for UPI Users
↗UPI free for users, merchants may face 'nominal' fee: Government
↗UPI payments may soon come with charges; Lok Sabha passes key Bill
↗UPI payments up to Rs 2,000 get explicit no-charge protection under new Govt notification
↗Charges on Transactions Above Rs 2000, Small Payments Stay Free
↗UPI Payments Above Rs 2,000 May Attract Merchant Fee Soon
↗Claims and linked sources
6 claimsOn 14 September 2026 the finance ministry's Department of Financial Services issued gazette notification S.O. 5067(E) under Section 10A of the Payment and Settlement Systems Act, 2007.
The notification names two protected electronic modes: debit cards powered by RuPay and UPI transactions up to Rs 2,000.
No bank or system provider may impose, directly or indirectly, any charge on a person making or receiving payments through the notified modes, covering sender and receiver alike.
The notification follows the Lok Sabha's 6 August 2026 passage of the Taxation and Other Laws (Amendment) Bill 2026, which empowered the Centre to specify no-charge payment modes under Section 10A.
Charges on UPI payments above Rs 2,000 remain undecided; the NPCI-headed UPI and Services Steering Committee will decide on any MDR.
Officials describe a possible MDR of roughly 0.25% to 0.4% for merchant transactions above Rs 2,000, but no rate, category list or date is finalised.