Important news has emerged regarding UPI payments. The government has cleared up people's confusion regarding its charges. The Finance Ministry has clarified that there will be no charges for payments up to 2,000 rupees.

There will be no charge on UPI payments up to Rs 2,000.

The government has provided significant relief to those making payments through UPI. The government has finally cleared up the confusion surrounding UPI charges that had been circulating for several days. The government has clarified that banks and payment system providers cannot impose any direct or indirect charges on UPI payments up to ₹2,000. This rule also applies to payments made using RuPay debit cards.

The government clarified
: On Monday, the Finance Ministry issued a memorandum under the Payment and Settlement Systems Act, 2007, which includes UPI payments up to ₹2,000 and payments made using RuPay debit cards as electronic payment methods that are not subject to charges. The government's clarification comes amid concerns that recent changes to the payment law have raised concerns that future fees may be imposed on UPI payments.

Not only this, but the government has also clarified that ordinary customers will not have to pay any transaction fees for using UPI. Consequently, the general public who make payments through UPI every day has breathed a sigh of relief.

Relief for those making small payments
This new notification from the Finance Ministry has clarified the situation for customers making small digital payments. This means that if a customer makes a payment of up to Rs 2,000 through UPI, the bank or payment system provider cannot charge them any transaction fee, either directly or indirectly. Digital payments are growing rapidly in India. According to the Finance Ministry, in July 2026, 2366 crore transactions were made through UPI, with a total value of approximately Rs 29.9 lakh crore.

No charges will be levied on UPI.
Finance Minister Nirmala Sitharaman has already clarified that the amendments to the law are not intended to impose charges on general UPI payments. The new law creates a framework under which MDR may be levied on select large merchant transactions in the future. However, this charge will not apply to all UPI payments. Person-to-person (P2P) UPI payments will remain free.