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The people’s newsroom

Fact checkUPI

Jairam Ramesh's claim on UPI charges above ₹2,000 is mostly true

The law was changed and only UPI payments up to ₹2,000 kept statutory protection. A merchant fee above that starts on 15 October, but users are not charged directly.

From the editorial deskPublished

The claim

The government is "opening the door to charges on Unified Payments Interface (UPI) transactions", and a new notification under the amended Payment and Settlement Systems Act removed a safeguard against fees on transactions above Rs 2,000.

Claim by: Jairam Ramesh, Congress general secretary in-charge communications
Seen on: Statement to media, reported by UNI; Congress social media handles, first seen 15 September 2026

Verdict: Mostly true

  1. True
  2. Mostly true
  3. Misleading
  4. False

What we found

Jairam Ramesh’s claim is mostly true. Parliament amended the Payment and Settlement Systems Act in August 2026 so that the Centre decides by notification which payments are shielded from charges. The 14 September notification shielded only UPI payments up to ₹2,000 and RuPay debit card payments. The next day NPCI set a 0.4% merchant discount rate (MDR) on merchant payments above ₹2,000 from 15 October.

The claim leaves out who pays. The fee falls on merchants, person-to-person transfers stay free at any value, and NPCI’s FAQ bars merchants from passing the fee on to customers.

How UPI charges came back on the table

  1. 4 Aug 2026Taxation and Other Laws (Amendment) Bill, 2026 introduced in Lok Sabha
  2. 6 Aug 2026Lok Sabha passes the Bill
  3. 10 Aug 2026Rajya Sabha passes the Bill
  4. 14 Sep 2026Finance Ministry notifies UPI up to ₹2,000 and RuPay debit cards as charge-free modes
  5. 15 Sep 2026NPCI announces 0.4% MDR on merchant payments above ₹2,000
  6. 15 Oct 2026MDR due to take effect

The evidence

What Ramesh said

On 15 September 2026, UNI reported that Ramesh, Congress general secretary in-charge communications, accused the government of “opening the door to charges on Unified Payments Interface (UPI) transactions”. He said the new notification removed a safeguard against fees on transactions above Rs 2,000, and that it vindicated a warning he gave on 6 August.

Source:UNI, 15 September 2026

The law now lets the Centre pick protected payments

PRS records that the Taxation and Other Laws (Amendment) Bill, 2026 was introduced on 4 August, passed by the Lok Sabha on 6 August and by the Rajya Sabha on 10 August, and that it amends the Payment and Settlement Systems Act, 2007. LiveLaw reported that Section 10A earlier barred charges on payments made through modes prescribed under Section 269SU of the Income-tax Act. The amendment replaced that link with modes “as the Central Government may, by notification, specify”. The Bill itself did not impose any charge.

Sources:PRS Legislative ResearchLiveLaw, 11 August 2026

Only payments up to ₹2,000 kept protection

LiveLaw reported that the Finance Ministry’s Department of Financial Services issued notification S.O. 5067(E) on 14 September 2026, naming RuPay debit cards and UPI payments up to ₹2,000. It quoted the notification: “No bank or system provider shall impose, whether directly or indirectly, any charge upon a person”. News On AIR reported that the bar covers both payer and payee.

Sources:LiveLaw, 15 September 2026News On AIR, 15 September 2026

A merchant fee starts on 15 October

Deccan Chronicle reported that the NPCI-led UPI and Services Steering Committee set a 0.4% MDR on person-to-merchant payments above ₹2,000 from 15 October 2026, with a ₹300 cap. Railways, telecom, insurance and fuel pay a flat ₹5. Small merchants receiving up to ₹1 lakh a month keep zero MDR and P2P stays free. SCC Online’s summary of NPCI’s FAQ says merchants “will not be permitted to pass MDR charges on to customers”.

Sources:Deccan Chronicle, 15 September 2026SCC Online, 16 September 2026

Why this claim spread

Ramesh had raised the issue while the Bill was before Parliament, and later dated his warning to 6 August, UNI reported. He alleged that the amendment may have been prompted by the US Trade Representative’s criticism of India’s zero-fee UPI and RuPay system, Business Today reported. Finance Minister Nirmala Sitharaman replied publicly on 6 August. Deccan Chronicle reported that UPI merchant payments have carried zero MDR since January 2020, so the September framework brings back a merchant fee on some UPI payments for the first time since then.

Sources:UNI, 15 September 2026Business Today, 6 August 2026

The documents