With reference to the notification regarding transaction charges in India, consider the following statements: 1. The government has already finalized the fee structure for transactions exceeding ₹2,000. 2. RuPay-powered debit card payments are exempt from bank charges. 3. Banks are prohibited from charging for UPI transactions up to ₹2,000. Which of the statements given above is/are correct?

On Monday, September 14, 2026, India notified changes to the Payment

GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims + Mains· 15 September 2026

Digital Public Infrastructure and financial inclusion: a key GS3 topic regarding transaction costs.

Why in news

The Government of India notified changes to the Payment and Settlement Act, 2007, prohibiting banks from charging for UPI transactions up to ₹2,000 and RuPay debit card payments.

Background

The notification specifies that no bank or system provider can impose direct or indirect charges on UPI transactions up to ₹2,000 or RuPay-powered debit card payments. The government has yet to decide on the fee structure for transactions exceeding this limit.

Facts for Prelims

Act / BillPayment and Settlement Act, 2007
FactUPI transactions up to ₹2,000 are exempt from bank charges
FactRuPay-powered debit card payments are exempt from bank charges
BodyUnified Payments Interface (UPI) is a designated electronic mode of payment

Prelims practice question

With reference to the notification regarding transaction charges in India, consider the following statements:

The government has already finalized the fee structure for transactions exceeding ₹2,000.
RuPay-powered debit card payments are exempt from bank charges.
Banks are prohibited from charging for UPI transactions up to ₹2,000.

Which of the statements given above is/are correct?

(a)2 only
(b)3 only
(c)1 and 3 only
(d)2 and 3 only

Show answer

Answer: (d) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: The government has yet to decide on the fee structure for transactions exceeding this limit.

For Mains

Q. Discuss the implications of regulating transaction fees on digital payment systems for financial inclusion and the growth of the digital economy in India.

Dimensions to cover in your answer

Consumer protection: Preventing predatory pricing on micro-transactions to encourage digital adoption
Revenue model conflict: Balancing zero-fee mandates with the operational costs of banking infrastructure
Market dynamics: Potential impact on the scalability of UPI as a primary retail payment rail

Keywords: Financial Inclusion · Digital Public Infrastructure · Monetary Policy · Transaction Costs · Retail Payments

Read the full news →Report a mistake in this note Source: The Hindu ↗Also: GS2 · e-Governance & citizen services

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