Govt opens the door to UPI charges above Rs 2,000
Every fact links to its official source.
60-second morning update
Change: The government has notified that UPI and RuPay debit payments up to Rs 2,000 stay free of bank charges. Payments above Rs 2,000 can now be charged a fee, called MDR, reports Business Standard. Until now, all UPI payments were free of this charge.
Impact: For 11 years, every UPI payment was free. This is the first paid tier ever, following a law Parliament passed in August. NPCI will set the exact fee soon.
Action: Branch and payments staff: tell merchants that payments up to Rs 2,000 stay free. The fee for bigger payments is not fixed yet.
Change: Today, 15 September, is RBI's deadline for shops to redo their KYC (identity check) to keep accepting UPI QR payments. Aggregators such as Paytm and PhonePe have asked RBI for more time, reports Free Press Journal. No extension is confirmed as of this morning.
Impact: Industry estimates say 3 to 4 in 10 small shopkeepers may not finish in time. Their QR code could stop accepting payments.
Action: Branch and customer service teams: tell shopkeeper customers to check their re-KYC status today.
Change: RBI has changed its credit card rules. From 1 April 2027, banks cannot charge a late fee until a bill is 3 days overdue, and the fee can only apply to the unpaid amount, not the whole bill.
Impact: Today, some banks charge on the full bill even after part payment. This rule stops that.
Action: Credit and cards teams: check your billing systems are ready well before April 2027.
Change: RBI has rejected Tata Sons' request to give up its NBFC (non-bank lender) licence, several reports say. Its board meets 17 September to decide its next step.
Impact: This keeps in force RBI's rule that large NBFCs must list on the stock market.
Action: NBFC compliance teams: check your own listing deadline if your company is a large (Upper Layer) NBFC.
Change: Reports name HDFC Bank's Deputy MD Kaizad Bharucha, 60, as the leading internal candidate for CEO, but he needs RBI to relax its 15-year tenure cap. The outside candidate's name is still not public.
Impact: HDFC Bank is India's largest private bank. CEO Sashidhar Jagdishan's term ends 26 October. The bank has also promoted Chief Credit Officer Jimmy Tata to whole-time director, pending RBI approval.
Action: Watch for RBI's decision on both the CEO name and the tenure rule.
Reserve Bank of India action board
What changed: RBI's amended credit and debit card rules (RBI/2026-27/29) stop banks from charging a late fee within 3 days of the due date, and say the fee can only apply to the amount you still owe, not your whole bill.
Who is affected: Every bank that issues credit cards, and every credit card holder.
What to do: No action needed from cardholders now. Banks must update their billing systems before the deadline.
Last date: Rule takes effect 1 April 2027.
Source: RBI circular RBI/2026-27/29 ↗
What changed: RBI's rule for payment aggregators requires shops taking UPI QR payments to redo their identity check (re-KYC). Today, 15 September, is the deadline. Payment aggregators have asked RBI for more time.
Who is affected: Small shopkeepers who accept UPI QR payments through apps like Paytm, PhonePe and Google Pay.
What to do: Shopkeepers should confirm their re-KYC is done today. No RBI extension is confirmed as of this morning.
Last date: 15 September 2026 (today). No extension confirmed.
Source: Free Press Journal ↗
What it means for your job
Branch and retail: UPI and RuPay payments up to Rs 2,000 stay free. Bigger payments may soon cost a fee, not yet fixed.
Compliance and risk: Today is the merchant re-KYC deadline, no RBI extension confirmed. Shops that miss it risk their QR code being switched off.
Credit and lending: RBI's new credit card rule stops late fees in the first 3 days and limits them to the unpaid amount, from 1 April 2027.
Payments and technology: NPCI will soon set the fee for UPI payments above Rs 2,000.
Careers and learning: An SBI Probationary Officer earns about Rs 21.97 lakh a year, with Rs 80,000 to 82,000 in hand each month.
NBFC and co-operative: RBI has rejected Tata Sons' bid to give up its NBFC licence. The stock-listing rule for large NBFCs stays in force.
People and industry: HDFC Bank's Kaizad Bharucha is the leading internal candidate for CEO, but needs RBI to relax a tenure rule first.
Treasury: RBI may take until early 2028 to absorb Rs 4 lakh crore of extra cash in the banking system through routine bond sales.
Banker problem solver
A shopkeeper calls, worried their UPI QR code will stop working today. What do you tell them?
Today is RBI's deadline for shops to complete re-KYC with their payment aggregator.
- Ask them to check their re-KYC status in their payment aggregator's app today.
- Tell them no RBI extension is confirmed as of this morning, so they should not wait.
- If their KYC is not done, tell them to contact their payment aggregator's support line right away.
Fraud and risk check
Check today: Merchant re-KYC deadline is today, no extension confirmed. Tell shopkeeper customers to check their status now.
Credit and recovery help
Credit card late fees are about to get fairer
From 1 April 2027, banks cannot charge a late fee within 3 days of your due date, and only on what you still owe, not the whole bill.
Career and technology help
What an SBI PO actually takes home
An SBI Probationary Officer's basic pay is Rs 56,480 a month. In-hand pay after deductions is Rs 80,000 to 82,000 a month. Total yearly package (CTC) is about Rs 21.97 lakh.
One important number
Rs 2,000
UPI and RuPay debit payments up to this amount stay free of bank charges under the government's new notification. Payments above this amount can now be charged a fee, for the first time in UPI's history.
Source: Inc42 ↗
Important dates
15 September (today) — Merchant re-KYC deadline, no extension confirmed.
17 September — Tata Sons board meets after RBI's rejection.
21 September — IBPS RRB application deadline, 6 days away.
26 October — HDFC's Jagdishan term ends; third bank strike begins.
One question
Do you support a fee on UPI payments above Rs 2,000? Yes / No