UPI Payment Fees Likely to Apply on Transactions Above ₹2,000, New Bill Proposes Change

The recent bill presented to the Parliament seeks to remove the existing provision that prohibits banks and payment service providers from charging fees on notified electronic payments. Under the proposed changes, UPI transactions exceeding ₹2,000 could be subject to a fee, including the merchant discount rate (MDR). The move would mark a significant shift from the current norm where UPI payments are free of charge. Analysts suggest the change could affect the cost structure for merchants and consumers alike, potentially increasing transaction costs for higher‑value payments.