The detailed guidelines may be issued based on the recommendations of the UPI Services Steering Committee, which is led by NPCI, sources said.
The development comes after the government notified changes to the Payment and Settlement Systems Act, specifying UPI transactions up to ₹2,000 and payments through RuPay-powered debit cards as electronic modes of payment on which charges cannot be imposed.
According to the Finance Ministry’s gazette notification, no bank or payment system provider can impose direct or indirect charges on a person making or receiving payments through the specified electronic modes.
The notification states that no charges are allowed on RuPay debit card transactions. It also specifies that no charges can be imposed on UPI transactions up to ₹2,000.
The changes follow amendments to the Payment and Settlement Systems Act passed by Parliament last month. The amendments gave the Centre the power to specify electronic modes of payment that would remain protected from charges and also paved the way for changes to the zero-MDR framework for UPI and RuPay transactions.
The move comes amid a broader debate over the sustainability of the UPI ecosystem and the role of Merchant Discount Rate (MDR).Finance Minister Nirmala Sitharaman had said that MDR applies to merchants rather than consumers and that such revenue could help banks and fintech companies invest in payment infrastructure and security.
The government had earlier clarified that consumers would not have to pay charges for UPI transactions. Sitharaman had said, “Will consumer pay any UPI charge — No,” adding that UPI had remained free for consumers since its launch and would continue to be so.
First Published: Sept 15, 2026 9:08 AM IST
