The Ministry of Finance, through the Department of Financial Services (DFS), has notified specific electronic modes of payment under the Payment and Settlement Systems Act, 2007, reinforcing the government's focus on promoting convenient and cost-free digital payments.
Through Notification S.O. 5067(E) dated September 14, 2026, the Central Government has specified RuPay-powered debit cards and UPI transactions up to Rs 2,000 as electronic modes of payment covered under Section 10A of the Payment and Settlement Systems Act, 2007.
RuPay Debit Cards and UPI up to Rs 2,000 Specified
The notification issued by the Department of Financial Services specifies the following electronic payment modes:
- Debit Cards powered by RuPay
- Unified Payments Interface (UPI) transactions up to Rs 2,000
The move brings these specified payment modes within the framework of Section 10A of the Payment and Settlement Systems Act, 2007.
No Charges on Specified Digital Payments
A key provision of the notification is that no bank or system provider shall impose any charge, either directly or indirectly, on a person making or receiving a payment through the electronic modes specified in the notification.
This means that payments covered by the notification cannot attract charges from banks or system providers merely because the payment is made or received using the specified electronic mode.
The provision applies to both sides of the transaction- the person making the payment as well as the person receiving it.
What Does the Notification Mean for Users?
For customers and businesses using the specified payment channels, the notification provides greater clarity on charges associated with these digital payment methods.
For example, where a payment falls within the specified category of UPI transactions up to Rs 2,000, banks and system providers cannot impose a charge on the payer or recipient for using that payment mode.
Similarly, RuPay-powered debit card payments are covered by the notification, with the prohibition extending to charges imposed either directly or indirectly.
Why This Matters for Digital Payments
Digital payments have become an important part of everyday transactions, particularly for small-value purchases and business payments. The government's latest notification strengthens the regulatory framework around certain electronic payment modes by ensuring that users are not burdened with charges for using the specified channels.
For merchants and customers, this can provide greater certainty when choosing between cash and digital payment options for eligible transactions.
Legal Basis of the Notification
The notification has been issued by the Ministry of Finance, Department of Financial Services, under the powers conferred by Section 10A of the Payment and Settlement Systems Act, 2007 (51 of 2007).
The notification is identified as S.O. 5067(E) and is dated September 14, 2026.
Key Takeaways
- RuPay-powered debit cards have been specified as an electronic mode of payment.
- UPI transactions up to Rs 2,000 have also been specified.
- No bank or system provider can impose a direct or indirect charge on a person making or receiving a payment through these specified modes.
- The notification has been issued under Section 10A of the Payment and Settlement Systems Act, 2007.
- The notification was issued by the Department of Financial Services, Ministry of Finance, on September 14, 2026.
The notification is part of the government's broader regulatory framework for electronic payments and provides clarity on the treatment of charges for the specified digital payment modes.
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