India Bans Bank Fees on UPI and RuPay Debit Card Payments up to ₹2,000

The government has amended the Payment and Settlement Act, 2007, to prohibit banks from charging fees on transactions of ₹2,000 or less made through UPI and RuPay‑powered debit cards. The change, announced in a recent notification, means that consumers will no longer pay any charges for small digital payments using these platforms. Banks must adjust their fee structures to comply with the new regulation. The amendment is part of a broader effort to make digital payments more affordable and to encourage greater use of India’s growing UPI ecosystem. The move is expected to lower the cost of everyday transactions for millions of users and to streamline the payment experience across the country.