# Lok Sabha Clears Legal Route for Possible UPI Merchant Charges 2026-08-06T17:37:14+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Lok Sabha passed a Bill amending the Payment and Settlement Systems Act, allowing the Centre to notify electronic payment modes on which banks and payment providers may levy charges. The legislation does not itself impose a fee or merchant discount rate (MDR). The Times of India reports the government may allow MDR of 0.25% to 0.4% on business UPI payments above Rs 2,000, while person-to-person transfers could remain exempt. About 5% of UPI transactions would fall within that threshold, though they represent nearly 65% of transaction value. GTRI said funding is needed for cybersecurity and expansion, but argued that targeted budget support or fees on large merchants could be alternatives. The CPI(M) called the proposal a breach of public trust. ## Coverage - timesofindia.indiatimes.com - rediff.com - rediff.com - rediff.com - economictimes.indiatimes.com Tags: digital payments, Lok Sabha, MDR, NPCI, UPI Canonical: https://indianopinion.org/lok-sabha-bill-opens-door-to-charges-on-some-upi-payments/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/lok-sabha-bill-opens-door-to-charges-on-some-upi-payments/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.