INCOME TAX15 Sept 2026
UPI transaction charges: Who will pay, who will earn and will small transactions stay free – explained | Mint
The Finance Ministry has notified that Unified Payments Interface (UPI) payments up to ₹2,000 cannot carry any charge from banks or system providers, covering about 96% of transactions. Person-to-person transfers stay free at any value. Regulators are still discussing a possible 0.4% fee on larger merchant payments, with banks getting 40%. Nothing changes for you today; keep watching for updates.
Key Statutory Highlights
- The Finance Ministry's notification bars banks and system providers from imposing any direct or indirect charge on UPI transactions up to ₹2,000.
- About 96% of UPI transactions by volume fall within the ₹0-₹2,000 band, so most payments stay free for both the payer and the merchant.
- Person-to-person UPI transfers remain free at any value, while a possible 0.4% charge on larger merchant payments is still being discussed.
Actionable Advice for Taxpayers / Founders:Keep paying and accepting small UPI payments as usual, since nothing changes for you right now. Watch for official Finance Ministry updates before you change your pricing or payment setup for larger merchant collections.
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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