Digital payments have now emerged as one of the key components of the Indian economy. Payment transactions via UPI and debit cards have become very popular for various purposes like shopping, business, bill payments, etc.
In order to make clear the rates applicable on specified electronic payment modes, the Ministry of Finance, Department of Financial Services, issued a Notification titled S.O. 5067(E) dated 14 September 2026.
The said notification is made under Section 10A of the Payment and Settlement Systems Act, 2007.
Under the said notification, RuPay-enabled debit cards and UPI payments up to ₹2,000 are notified as electronic payment modes.
Overview of the Government Notification
The key details of the notification are as follows:
| Particulars | Details |
| Issuing Ministry | Ministry of Finance |
| Department | Department of Financial Services |
| Notification Number | S.O. 5067(E) |
| Date of Notification | 14 September 2026 |
| Relevant Law | Payment and Settlement Systems Act, 2007 |
| Relevant Provision | Section 10A |
| Modes Covered | RuPay-powered debit cards and UPI transactions up to ₹2,000 |
| Restriction | No direct or indirect charges by banks or system providers on the specified payments |
The notification is intended to ensure that users are not burdened with charges on the electronic payment modes specified in it.
What Does the Notification Say?
The notification states that the Central Government specifies the following electronic modes of payment:
- Debit cards powered by RuPay
- Unified Payments Interface (UPI) transactions up to ₹2,000
It further provides that no bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment through the electronic modes specified in the notification.
In simple words, the notification prohibits banks and system providers from imposing charges on the specified payment modes covered by the notification.
Electronic Payment Modes Covered
A. RuPay-Powered Debit Cards
RuPay is a payment card network in India that enables transactions using debit cards, among others.
The notice pertains particularly to the use of RuPay-debit cards.
The language of the notice does not contain any transaction limit of ₹2,000 for RuPay-enabled debit cards.
Hence, it is apparent that the ₹2,000 transaction limit referred to in the notice pertains only to the UPI transactions, and not RuPay debit card transactions in general.
B. UPI Transactions up to ₹2,000
The second specified payment mode is the Unified Payments Interface, commonly known as UPI.
Under the notification, UPI transactions up to ₹2,000 are covered by the specified no-charge protection.
UPI is widely used for:
- Person-to-person payments
- Payments to merchants
- Small business transactions
- Utility bill payments
- Online purchases
- Everyday digital payments
The notification provides statutory protection against direct and indirect charges on UPI transactions within the specified limit.
Legal Basis of the Notification
The notification has been issued under Section 10A of the Payment and Settlement Systems Act, 2007.
This provision empowers the Central Government to specify electronic modes of payment for which charges cannot be imposed on persons making or receiving payments.
The notification exercises this power by specifying:
- RuPay-powered debit cards; and
- UPI transactions up to ₹2,000.
Thus, the notification provides a legal basis for the restriction on charges applicable to these specified payment modes.
Prohibition on Direct and Indirect Charges
One of the most important aspects of the notification is that it prohibits both direct and indirect charges.
What are direct charges?
A direct charge is a fee imposed specifically for making or receiving a payment.
For example:
A bank imposes a separate fee on a customer for making a payment through a payment mode covered by the notification.
Such a charge would fall within the prohibition.
What are indirect charges?
An indirect charge is a fee imposed through another method but connected with the payment transaction.
The notification specifically states that banks and system providers cannot impose charges either directly or indirectly on persons making or receiving payments through the specified electronic modes.
This provision is intended to prevent the restriction from being bypassed through alternative forms of payment-related charges.
Impact on Individuals and Businesses
A. Impact on Customers
Customers using the specified payment modes can benefit from protection against direct and indirect charges.
This is particularly relevant for small-value UPI payments, which are frequently used for everyday transactions.
B. Impact on Merchants
Merchants accepting digital payments should understand which payment transactions are covered by the notification.
They should also review their payment arrangements and ensure that any charges imposed on customers or recipients comply with applicable laws and regulations.
C. Impact on Banks and Payment System Providers
Banks and system providers must ensure that they do not impose prohibited charges on persons making or receiving payments through the specified electronic modes.
Their payment systems, pricing structures and customer-facing charges may need to be reviewed to ensure compliance.
Are UPI Transactions Above ₹2,000 Chargeable?
No automatic charge has been introduced merely because a UPI transaction exceeds ₹2,000.
The notification specifically covers UPI transactions up to ₹2,000. It does not, by itself, prescribe a charge or a particular fee rate for transactions above that amount.
Therefore, the following distinction is important:
| Transaction | Position under the notification |
| UPI transaction up to ₹2,000 | Covered by the specified no-charge protection |
| UPI transaction above ₹2,000 | Not covered by this particular UPI limit |
| RuPay-powered debit card payment | Specified as a covered electronic payment mode without a value limit in the notification |
Any separate charges applicable to transactions outside the specified protection would depend on the relevant law, regulations and applicable directions.
Frequently Asked Questions
1. What is the latest notification regarding UPI charges?
The Ministry of Finance issued Notification S.O. 5067(E) dated 14 September 2026, specifying RuPay-powered debit cards and UPI transactions up to ₹2,000 as electronic payment modes covered under Section 10A of the Payment and Settlement Systems Act, 2007.
2. What is the maximum UPI transaction amount covered by the notification?
The notification covers UPI transactions up to ₹2,000.
3. Does the ₹2,000 limit apply to RuPay debit cards?
No. The notification separately specifies RuPay-powered debit cards and UPI transactions up to ₹2,000. It does not prescribe a ₹2,000 value limit for RuPay-powered debit card payments.
4. Can banks impose charges on UPI transactions up to ₹2,000?
Banks and system providers cannot impose direct or indirect charges on persons making or receiving payments through the specified electronic modes covered by the notification.
5. Does the notification apply to both the sender and the receiver?
Yes. The notification prohibits charges on a person making or receiving a payment through the specified electronic modes.
6. What is the difference between direct and indirect charges?
A direct charge is a fee imposed specifically for a payment. An indirect charge is a payment-related fee imposed through another mechanism. The notification prohibits both types of charges on the specified payment modes.
7. Does the notification mean that all UPI payments above ₹2,000 will now attract charges?
No. The notification does not automatically introduce charges on UPI transactions above ₹2,000. It specifies the UPI transactions covered by the particular statutory no-charge protection.
8. Which law provides the legal basis for this notification?
The notification has been issued under Section 10A of the Payment and Settlement Systems Act, 2007.
9. Who issued the notification?
The notification was issued by the Department of Financial Services, Ministry of Finance, Government of India.
10. Why is this notification important for businesses?
It helps businesses understand the payment modes covered by the statutory restriction on charges. Businesses accepting digital payments should review their payment arrangements and ensure compliance with applicable legal requirements.
Conclusion
The Government’s notification issued on 14 September 2026 throws significant light on the charges on certain electronic payment mechanisms.
This includes RuPay debit cards and UPI payments up to ₹2,000, where banks and system providers are barred from imposing any charges directly or indirectly to those who make payments and receive payments through the above-mentioned modes.
Customers and merchants need to keep themselves aware about the notification for the purpose of maintaining compliance with respect to digital payments.
It needs to be noted by businesses that just because of the notification, all UPI payments in excess of ₹2,000 shall automatically attract charges.
For detailed information, refer to the official notification issued by the Ministry of Finance:
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