India’s government has confirmed that UPI transactions of up to ₹2,000 will continue without direct or indirect charges for users. The decision is aimed at supporting the country’s rapidly expanding digital-payment ecosystem and ensuring that small-value transactions remain affordable.
According to the government notification, banks and payment-system providers cannot impose charges on eligible UPI transactions up to the ₹2,000 limit. The measure is particularly significant for consumers who regularly use UPI for grocery shopping, transportation, food orders, utility payments and other everyday purchases.
UPI has become one of India’s most widely used payment systems, with millions of transactions taking place every day. Keeping small-value payments free is also expected to benefit small merchants and businesses that increasingly depend on digital payments.
The government has been supporting low-value UPI and RuPay transactions through financial incentives to payment-service providers. The latest move is intended to maintain the affordability and accessibility of digital payments while encouraging wider adoption across urban and rural India
