Centre bars charges on UPI and RuPay debit payments up to ₹2,000
Banks and payment-system providers cannot levy charges on either payer or recipient for UPI or RuPay debit-card transactions up to ₹2,000, clarifying merchant-payment cost rules after the MDR framework changed.
What happened
Centre notified that banks and payment-system providers cannot charge payers or recipients for UPI or RuPay debit-card transactions up to ₹2,000. The move
Key facts
- ₹2,000
- 6 August
- 2026
- Section 10A
- 0%
- 2020
- ₹1,000
Why this matters
Banks, fintechs and retail-payment partners should prioritize value-added services and higher-value payment flows, where the fee framework remains less settled.
What to watch
- NPCI, RBI or Finance Ministry clarification on MDR, interchange or subsidy arrangements for transactions above ₹2,000.
- Changes in government reimbursement or incentive support for UPI and RuPay debit infrastructure.
- PSP and bank revisions to soundbox rentals, settlement charges, gateway fees or merchant-service bundles.
- Digital-payment share and average ticket-size trends in kirana, QSR, pharmacy, grocery and value retail.
- Evidence of payment splitting, tender steering or merchant surcharges in higher-value retail categories.
- Keep UPI and RuPay debit prominently available across all low-ticket checkout points; avoid cash-only practices that could weaken conversion.
- Track payment acceptance economics by tender, basket size and store format rather than treating all digital payments as cost-free.
- Negotiate bundled PSP/acquirer contracts carefully, separating regulated transaction acceptance from optional soundbox, software, settlement and lending fees.
- Use low-cost UPI acceptance to target small-basket repeat purchases, subscription replenishment and assisted digital ordering.
- Prepare customer and cashier communication for any future differential treatment of transactions above ₹2,000.
Also reported by
- Mint · Industry — Same time