UPI Transaction: The news has come to the fore regarding UPI transactions for crores of people in the country. The central government has banned charging any fee or charges on UPI transactions up to ₹2,000. This decision will bring great relief to general UPI users as well as small traders and shopkeepers.
The government has also decided to make RuPay debit card transactions up to ₹2,000 completely free. That means no fee can be charged on payments up to this limit.
The government issued a gazette notification
The central government has issued an official gazette notification on Monday regarding this decision. A gazette notification is an official notification issued by the government and has legal significance.
According to a notification issued by the Finance Ministry, under Section 10A of the Payment and Settlement Systems Act, 2007, the central government has barred banks and system providers from directly or indirectly charging UPI and RuPay debit card payments up to ₹2,000.
Payment up to ₹2,000 through UPI is completely free
This decision simply means that UPI transactions up to ₹2,000 will not be charged any kind of fee.
Neither the sender nor the receiver can be charged by the bank or the payment service provider. That means payments made through UPI services like PhonePe, Paytm, Google Pay will not incur any additional charges up to this limit.
Small traders will also get a big relief
This decision of the government is likely to benefit especially the small shopkeepers and traders. As UPI is widely used for day-to-day small payments, the question of transaction charges was important for small merchants.
Now the provision of not charging UPI payments up to ₹2,000 will give more flexibility to small merchants to accept digital payments.
RuPay debit card payment also free
Apart from UPI, no fee will be charged on transactions up to ₹2,000 through RuPay Debit Card.
Neither the bank nor the respective service provider may charge any direct or indirect fees from both the payer and the payee.
What changed?
- UPI Payment: No charge up to ₹2,000
- RuPay Debit Card: No charge up to ₹2,000
- Remitter: No fee
- Payee: No fee
- Small traders: Great relief in digital payments
This decision by the government is likely to directly benefit crores of UPI users and small merchants while further promoting digital payments.
