UPI Charges Banned: Your ₹2,000 Pays Full — No Cuts

The government has made it illegal for banks and payment providers to charge you — directly or indirectly — on UPI transactions up to ₹2,000 and RuPay debit card payments. Your small daily payments are now fully protected by law.

Here's what happened: The government has amended the Payment and Settlement Systems Act to legally prohibit banks and payment operators from levying any direct or indirect charges on UPI transactions up to ₹2,000.. RuPay debit card payments are also covered under the same notification, protecting both online and offline small-ticket card transactions from hidden fees.. The ban applies to charges on both sides of the transaction — neither the person paying nor the merchant receiving payment can be billed for these small UPI transfers..

What you should do: Check your bank statement for any UPI-related charges on transactions below ₹2,000 — if you spot any, raise a complaint with your bank's grievance cell immediately.. File a complaint with the RBI Ombudsman at rbi.org.in if your bank refuses to reverse an unlawful UPI charge — the process is free and fully online.. Inform your local shopkeeper or small business owner that they cannot legally be charged a merchant fee on UPI payments under ₹2,000 — many small merchants don't know this protection exists..

Banks sometimes disguise transaction charges as 'value-added service fees' or 'wallet reload charges' — check your monthly bank statement line by line, not just UPI app history, to catch these.

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