India, Sept. 15 -- The government has clarified that banks and system providers cannot impose charges on UPI transactions up to Rs 2,000. The Finance Ministry issued a gazette notification under the Payment and Settlement Systems Act, 2007, specifying UPI transactions up to the threshold and RuPay-powered debit cards as electronic modes of payment covered by the provision.

The notification states that no direct or indirect charge can be imposed on a person making or receiving payments through the specified electronic modes. The move is aimed at providing greater clarity on the rules governing charges associated with digital payments and UPI transactions.

The government had also clarified last month that consumers will not be charged fo...