UPI and RuPay debit payments up to ₹2,000 to remain charge-free

A government notification bars banks and payment providers from levying charges on UPI and RuPay debit-card transactions up to ₹2,000. MDR for higher-value UPI payments remains undecided, pending NPCI steering committee guidance.

— Source publishedTue, 15 Sept, 2026, 12:01 IST·First seen Tue, 15 Sept, 2026, 12:04 IST·Source YourStory

What happened

The government barred banks and payment providers from charging for UPI or RuPay debit-card transactions up to Rs 2,000. Charges for higher-value UPI payments

Key facts

  • Rs 2,000
  • September 14, 2026
  • August 13, 2026
  • 11 countries
  • Rs 0.07 lakh crore in FY17
  • Rs 314 lakh crore in FY26
  • more than 4,000-fold

Why this matters

Prioritize partnerships with UPI-led merchant-acquisition, checkout, and value-added-services platforms, while diligencing their exposure to a future MDR framework for larger transactions.

What to watch

  • NPCI steering committee recommendations on MDR for UPI transactions above ₹2,000.
  • Finance Ministry, RBI or NPCI clarification on merchant-category exemptions, rate caps and effective dates.
  • Changes in payment-service-provider pricing, particularly gateway, settlement and value-added-service fees.
  • UPI transaction mix moving above ₹2,000, especially in electronics, fashion, travel and omnichannel retail.
  • Merchant steering behavior, including discounts for UPI, card surcharges where permitted, or reduced acceptance of high-value UPI payments.
  • Growth in RuPay credit card on UPI and any separate pricing rules for credit-linked UPI transactions.
  • Maintain or expand UPI-first checkout flows for baskets below ₹2,000, where acceptance costs remain protected.
  • Segment payment economics by ticket size, merchant category and channel to quantify exposure if MDR is imposed above ₹2,000.
  • Negotiate acquiring and payment-gateway contracts with explicit protections against pass-through pricing for higher-value UPI transactions.
  • Test checkout nudges toward UPI for low-ticket purchases while retaining cards, EMI and pay-later options for higher-value baskets.
  • Accelerate adoption of merchant value-added payment tools, including reconciliation, loyalty linkage, instant refunds and embedded credit, to offset any future MDR pressure.

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