# Lok Sabha Clears Legal Route for UPI and RuPay Charges

2026-08-07T00:51:28+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Lok Sabha passed amendments to the Payment and Settlement Systems Act, 2007, allowing the government to permit charges on UPI, RuPay debit cards and other notified electronic payments. The Bill does not impose a fee immediately. UPI transactions remain free for consumers, while future notifications could allow merchant discount rates on selected payments. The change removes the legal barrier that has supported the zero-MDR regime since January 2020. The Global Trade Research Initiative said India should not alter UPI policy because of US pressure. It urged the government to retain payment-data localisation and consider alternatives such as budgetary support, charges on large commercial transactions or fees for high-turnover merchants. The US Trade Representative's report criticised India's UPI and RuPay framework, GTRI said.

## Coverage

- economictimes.indiatimes.com <https://economictimes.indiatimes.com/news/india/india-refuses-to-compromise-upi-policies-amid-us-pressure-advocates-for-payment-autonomy/articleshow/133013272.cms>
- livemint.com <https://www.livemint.com/news/india/tax-amendment-bill-passed-in-lok-sabha-what-changes-for-upi-transactions-offshore-fund-norms-nirmala-digital-payments-11786066421579.html>
- deccanherald.com <https://www.deccanherald.com/business/mdr-fees-on-upi-rupay-transactions-come-amid-us-pressure-for-level-playing-field-4102224>

Tags: data localisation, digital payments, GTRI, UPI, US trade policy
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