Now Reading: Lok Sabha Clears Legal Route for UPI and RuPay Charges
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Lok Sabha Clears Legal Route for UPI and RuPay Charges
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…
The Story in Brief
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.
The Indian Opinion
The loudest claims point in opposite directions: one side calls the amendment a hidden UPI tax, while another presents it as an automatic fix for payment companies. Neither is accurate. The law creates permission, not a charge, and the government still has to specify who pays and how much. India should judge any fee by its effect on small merchants, users and system costs, not US lobbying or slogans about free payments. The first test is the notification and its tariff.
Sources (3): economictimes.indiatimes.com, livemint.com, deccanherald.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
