The central government on Monday issued an official gazette notification declaring that banks will not be allowed to levy any charges on Unified Payments Interface (UPI) transactions valued at ₹2,000 or less. The move is expected to benefit millions of daily users who rely on UPI for everyday purchases and small money transfers. Alongside UPI, the government also clarified that payments made through RuPay debit cards up to the same ₹2,000 limit will remain entirely fee-free. This ensures consumers can complete routine digital payments without worrying about hidden charges or service fees being deducted by their banks. For UPI transactions exceeding ₹2,000, the government stated that the decision regarding any applicable charges will rest with the UPI and Services Steering Committee, which is chaired by the National Payments Corporation of India (NPCI). This committee will evaluate and determine the pricing structure for larger digital transactions going forward. The notification was issued under the broader Payment and Settlement Systems framework, reinforcing the government's commitment to promoting digital finance across the country. Financial analysts say the ban on charges for smaller UPI transactions aligns with the national push to expand cashless payments and reduce reliance on physical currency. The Reserve Bank of India has previously supported efforts to keep micro-transactions free to encourage adoption among first-time digital payment users, particularly in rural and semi-urban areas. Banking associations have so far not issued a public response to the latest notification, though industry sources suggest compliance should be straightforward since most banks already offer free UPI transactions well below the new threshold.