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Banks' panel to decide on UPI merchant charges on transactions above ₹2,000
GENERAL
15 Sept 2026

Banks' panel to decide on UPI merchant charges on transactions above ₹2,000

A gazette notification dated September 14 says UPI and RuPay debit card payments up to ₹2,000 from person to merchant stay free, and person-to-person UPI remains free too. For payments above ₹2,000, a 22-member committee of banks and payment groups will soon decide the merchant charge. If you run a business, keep tracking this — small payments to you stay free for now.

Key Statutory Highlights

  • A gazette notification dated September 14 says no bank or system provider may impose any charge, directly or indirectly, on a UPI or RuPay debit card payment of up to ₹2,000 from person to merchant.
  • All person-to-person UPI transactions will also continue to be free.
  • The 22-member UPI & Services Steering Committee, which includes the Indian Banks' Association and Payments Council of India, will soon decide the Merchant Discount Rate on UPI transactions above ₹2,000 to merchants.
Actionable Advice for Taxpayers / Founders:If you accept UPI as a merchant, no action is needed right now for payments of ₹2,000 or less, as those stay free. Keep an eye on the committee's decision, since any future merchant charge would apply only to payments above ₹2,000.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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