Income Tax 15 September 2026
India bans fees on UPI and RuPay debit transactions up to Rs 2,000
The Indian government has issued a notification prohibiting banks and payment processors from charging fees on Unified Payments Interface (UPI) transactions and RuPay debit card payments that are Rs 2,000 or less. This move follows the recent amendment to Section 10A of the Payment and Settlement Systems Act under the Taxation and Other Laws (Amendment) Bill, 2026, aiming to reduce transaction costs for consumers and boost digital payment adoption across the country.
The government has ordered a zero‑fee policy for small digital payments:
- No charges on UPI transactions up to Rs 2,000.
- No fees on RuPay debit card payments up to the same limit.
- Applies to all banks and payment service providers under the amended Section 10A of the Payment and Settlement Systems Act.
The directive is part of the Taxation and Other Laws (Amendment) Bill, 2026, passed last month, and is intended to make digital payments cheaper and more accessible. Read full report
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