No Bank Fees on UPI Payments Up to ₹2,000, Says Government
The government barred banks from charging fees on UPI and RuPay debit card transactions up to ₹2,000, altering an earlier provision. Meanwhile, India is pursuing cross-border central bank digital currency links with Asian neighbors.
Government blocks transaction fees on small UPI payments
The government issued a notification preventing banks from imposing charges on UPI payments and RuPay-powered debit card transactions up to ₹2,000, as The Hindu and Indian Express reported. The move amends an earlier provision that had opened the door to fees on digital payments through UPI. Officials said the change is part of a broader effort to keep India's digital payment infrastructure accessible.
Cross-border CBDC pilots move forward
India is close to establishing cross-border payment links with several Asian neighbors using its central bank digital currency, the digital rupee, according to PaymentsJournal. The partnerships would extend the CBDC's reach beyond domestic trials into regional settlement infrastructure, though no specific countries or timelines were named in the coverage.
Passkey authentication goes live for meal cards
Zeta and Pluxee launched live passkey authentication for meal card transactions, as FinTechBizNews reported. The rollout follows the Reserve Bank of India's push for stronger security in the payments sector. The system replaces traditional password or OTP workflows with biometric verification.
What this means for you
If you rely on UPI or a RuPay debit card for everyday purchases under ₹2,000—groceries, fuel, utilities—those transactions will continue to remain free of bank-imposed fees. The rule protects the zero-cost model that has driven UPI adoption, especially for small-value payments. Watch for updates on cross-border CBDC links if you send money to family or suppliers in neighboring countries; pilot programs could eventually offer faster, cheaper alternatives to traditional remittance channels.
Sources
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