Information verified
The notification and supporting reports were checked on September 15, 2026. The threshold, implementation status and any future MDR framework are time-sensitive.
Confirm the latest government, NPCI and issuer announcements before relying on this information.
The short answer
The Government of India has changed the legal framework for charges on UPI payments.
Ministry of Finance Notification S.O. 5067(E), dated September 14, 2026, protects UPI transactions up to ₹2,000 and payments made using RuPay debit cards from direct or indirect charges.
It does not introduce a fee on every UPI payment above ₹2,000. A separate decision would still be needed to specify rates, covered transactions, who pays and when any charge starts.
What does the notification say?
The notification was issued under Section 10A of the Payment and Settlement Systems Act. It identifies two protected payment categories:
- Debit cards powered by RuPay
- UPI transactions up to ₹2,000
It says a bank or system provider cannot impose a direct or indirect charge on a person making or receiving a payment through those specified modes.
The notification does not publish an MDR rate, an implementation date for larger-payment charges, a merchant-category list or a customer fee.
Are UPI payments above ₹2,000 chargeable now?
Not automatically. The notification guarantees protection for qualifying UPI payments of ₹2,000 or less. It also creates legal room for a future charging framework outside the protected categories.
Reuters reported that a final decision about whether charges would be introduced and how they would work had not been taken when the notification was published.
Users should therefore not assume that scanning a UPI QR code for ₹2,001 will immediately add a fee. Any final framework would need to explain coverage, rates, exemptions and its effective date.
RuPay debit and credit cards are different
The notification separately names RuPay debit cards. It does not provide the same separate category for RuPay credit cards.
A RuPay credit-card payment made through UPI is still a UPI transaction. Payments up to ₹2,000 fall within the protected UPI threshold. The future treatment of larger transactions requires confirmation if a detailed framework is issued.
| Payment type | Confirmed position |
|---|---|
| UPI payment up to ₹2,000 | Protected from direct or indirect charges |
| UPI payment above ₹2,000 | No automatic fee announced; a future framework is possible |
| RuPay debit-card payment | Separately protected by the notification |
| RuPay credit card on UPI up to ₹2,000 | Covered by the protected UPI threshold |
| RuPay credit card on UPI above ₹2,000 | Future treatment requires confirmation |
Every position is time-sensitive. Reconfirm it if the government or NPCI publishes a detailed MDR circular.
What is MDR?
Merchant Discount Rate, or MDR, is a payment-processing charge generally collected from a merchant when it accepts a digital payment.
The amount may be shared among the issuing bank, acquiring bank, payment network and payment processor. MDR is not automatically the same as a customer transaction fee.
Government officials have previously indicated that any future UPI MDR would be paid by merchants rather than consumers. However, the final framework had not been published when this article was prepared.
Confirmed: The September 14 notification does not establish a customer fee on UPI transactions above ₹2,000.
Interpretation: If MDR is introduced, some merchants could reconsider payment acceptance or discounts. That is a possible business response, not a confirmed policy result.
Does this change credit-card rewards?
The notification does not change RuPay credit-card reward rates. Rewards continue to depend on the card issuer's terms.
Check the current rules for:
- Minimum eligible transaction amounts
- Merchant-category and UPI exclusions
- Monthly reward caps
- Annual-fee-waiver calculations
- Refund and reversal treatment
An issuer must separately communicate any change to its reward programme. Do not assume the government notification removes existing card rewards.
Where can RuPay credit cards be used through UPI?
NPCI says eligible RuPay credit cards can be linked to supported UPI applications and used for eligible merchant payments.
The facility does not permit:
- Person-to-person transfers
- Person-to-person-merchant transactions
- Cash withdrawals at merchants
- Card-to-card payments
This distinction matters because general reporting may discuss all UPI transactions, while RuPay credit cards are limited to supported merchant-payment use cases.
What should cardholders do now?
- Confirm that the merchant accepts credit-card-funded UPI.
- Review the final amount before entering the UPI PIN.
- Check for any separately disclosed convenience fee.
- Confirm the transaction's reward eligibility.
- Check the available credit limit.
- Save the payment confirmation.
- Watch for official government, NPCI and issuer updates.
Do not stop using UPI or cancel a RuPay credit card based only on headlines that charges are coming. Wait for final rules containing rates, coverage and implementation dates.
Confirmed facts and interpretation
Confirmed
- S.O. 5067(E) was issued on September 14, 2026.
- UPI payments up to ₹2,000 are protected.
- RuPay debit-card payments are separately protected.
- No MDR rate for larger UPI payments was specified.
- Eligible RuPay credit cards support merchant UPI use.
Editorial interpretation
- Larger payments are not automatically chargeable now.
- A future MDR may primarily affect merchants.
- Merchant acceptance could change if MDR is introduced.
- Wait for detailed rules before changing payment habits.
Key takeaways
UPI payments up to ₹2,000 remain protected from charges.
RuPay debit cards are separately protected by the notification.
No universal fee on payments above ₹2,000 has started.
MDR and a customer transaction fee are not the same.
Credit-card rewards remain subject to issuer terms.
Recheck the position when detailed rules are published.
Frequently asked questions
Will I be charged for sending ₹3,000 through UPI?
No automatic fee has been announced. The notification permits a future framework but does not introduce a rate.
Does the ₹2,000 limit apply to RuPay debit cards?
The notification separately lists RuPay debit cards without attaching the ₹2,000 wording to that category.
Does the rule apply to RuPay credit cards?
RuPay credit cards are not separately listed. When used through UPI, payments up to ₹2,000 fall within the protected UPI category. Confirm future treatment for larger payments.
Will my RuPay credit-card rewards stop?
The notification does not change rewards. Check the current programme terms for your exact card.