There will be no charges on UPI payments of up to ₹2,000. The Union Finance Ministry has issued a clarification regarding the ongoing discussions surrounding UPI payments. The government stated that neither banks nor payment system providers can levy any charges—directly or indirectly—on UPI payments up to ₹2,000. Payments made via RuPay debit cards have also been included under this provision.
Notably, the ‘Taxation and Other Laws (Amendment) Act, 2020’ was passed by Parliament in August. This Act amended Section 10A of the ‘Payment and Settlement Systems Act, 2007,’ empowering the government to determine which digital payments would be exempt from charges. Following this, speculation arose that charges might be levied on UPI payments exceeding ₹2,000. However, a notification issued by the Ministry of Finance has clarified that no charges will be imposed on UPI payments of up to ₹2,000.
