Centre Prohibits Charges On UPI Transactions Up To Rs 2,000 & RuPay Debit Card
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Centre Prohibits Charges On UPI Transactions up to Rs 2,000 & RuPay Debit Card
(New Delhi, 15 September 2026) – The Reserve Bank of India (RBI) issued a circular on 14 September 2026 ordering all payment service providers to stop levying any fee on Unified Payments Interface (UPI) transactions of Rs 2,000 or less and on all RuPay debit‑card transactions. The directive, published on RBI’s official website and confirmed by India Today on 15 September, is intended to deepen financial inclusion and accelerate the shift toward cashless payments.
Under the new rule, banks and fintech firms must absorb processing costs for qualifying transactions, eliminating “per‑transaction” charges that some providers introduced in early 2026. RBI’s statement noted that the move aligns with central bank’s “Digital India” agenda and follows a similar zero‑fee policy applied to UPI payments above Rs 2,000 introduced in 2024.
Industry reaction has been largely positive. A spokesperson for National Payments Corporation of India (NPCI) said the policy will “remove a barrier for ticket merchants and consumers, especially in tier‑2 and tier‑3 cities.” Reuters reported that RBI expects the measure to boost UPI transaction volume by 12 percent in next quarter, while Ministry of Finance will monitor any impact on bank revenue streams. Analysts estimate the waiver will generate an additional ₹1.8 billion monthly by year‑end 2026.
Consumer groups have welcomed the change, citing reduced transaction costs for everyday purchases such as groceries and transport. RBI gave processors a 30‑day window to implement the waiver; compliance will be audited by supervision department.
Sources: RBI press release (14 Sept 2026), India Today (15 Sept 2026), Reuters (15 Sept 2026).
