UPI Payment Charges have been clarified by the government amid recent confusion over whether customers could be charged for digital payments.
The Finance Ministry has said that UPI payments up to ₹2,000 cannot attract direct or indirect charges from banks or payment system providers.
UPI Payment Charges Up to ₹2,000
The Finance Ministry issued a memorandum under the Payment and Settlement Systems Act, 2007.
It covers UPI payments up to ₹2,000 and payments made using RuPay debit cards as electronic payment methods that are not subject to charges.
The clarification came after concerns emerged that changes to the payment law could lead to fees being imposed on UPI transactions.
The government has made it clear that ordinary customers will not have to pay transaction fees for using UPI.
Relief for Small UPI Payments
Customers making UPI payments of up to ₹2,000 can continue using the service without direct or indirect transaction charges from banks or payment system providers.
The clarification provides relief to people who regularly use UPI for small digital payments. UPI has become a major part of India’s digital payment system, with transactions continuing to grow rapidly.
According to the Finance Ministry, UPI recorded 2,366 crore transactions in July 2026, with the total value reaching approximately ₹29.9 lakh crore.
Will UPI Payments Be Charged in Future?
Finance Minister Nirmala Sitharaman has already clarified that amendments to the payment law are not intended to impose charges on general UPI payments.
The new legal framework allows for the possibility of Merchant Discount Rate (MDR) on select large merchant transactions in the future. However, this does not mean that charges will apply to every UPI payment.
Person-to-person (P2P) UPI payments will remain free, according to the clarification. The government has therefore ruled out any immediate transaction fee burden on ordinary customers using UPI.