The Indian government has officially instructed banks and payment system providers to refrain from charging fees for transactions conducted via the Unified Payments Interface (UPI) for amounts up to Rs 2,000. Additionally, the directive extends to payments made using RuPay debit cards. This move is intended to maintain the zero-cost structure that has fueled the rapid adoption of digital payments across the country.

The announcement comes amidst political scrutiny, with opposition leader Rahul Gandhi publicly accusing the central government of attempting to 'quietly' introduce fees on these digital services. While the government's directive serves as a formal clarification to prevent such charges, the timing of the statement has sparked a debate regarding the future sustainability of free digital payment infrastructure. The government maintains that UPI is a public good and that the cost of maintaining the system should not be passed on to the end consumer, though industry stakeholders have previously expressed concerns about the financial burden of processing high volumes of small-value transactions without merchant discount rates (MDR).