Guwahati, Sept. 15 -- The government has clarified that banks and payment system providers cannot levy any direct or indirect charges on UPI transactions of up to Rs 2,000, according to a notification issued by the Finance Ministry.

The same exemption applies to payments of up to Rs 2,000 made using RuPay-powered debit cards, the notification said.

The Finance Ministry issued the clarification under Section 10A of the Payment and Settlement Systems Act, 2007, formally recognising RuPay debit card payments and UPI transactions up to the specified limit as electronic modes of payment that cannot attract charges.

The notification states that neither banks nor system providers can impose charges on individuals making or receiving payments ...