Now Reading: Lok Sabha Bill Opens Door to Charges on Some UPI Payments
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Lok Sabha Bill Opens Door to Charges on Some UPI Payments
The Lok Sabha has passed a Bill allowing the government to notify electronic payment modes on which banks and payment providers may levy charges, including UPI. The legislation does not impose a…
The Story in Brief
The Lok Sabha has passed a Bill allowing the government to notify electronic payment modes on which banks and payment providers may levy charges, including UPI. The legislation does not impose a fee. The Times of India reports the government may consider a 0.25% to 0.4% merchant discount rate on business 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. UPI recorded 23.7 billion transactions worth Rs 29.9 lakh crore in July.
The CPI(M) has called the proposal a breach of public trust and sought its withdrawal. GTRI says UPI needs sustainable funding but argues that general merchant charges are not the only option. It also urged India not to alter policy because of US criticism. RBI Governor Sanjay Malhotra called discussion of MDR premature. The current zero-charge framework remains in place until the government issues a notification.
The Indian Opinion
The loudest claims run in opposite directions: that every UPI payment will soon cost users, or that any fee would destroy digital payments. Neither follows from this Bill. It creates legal room for a future notification, while the reported proposal targets a narrow set of business transactions. The real test is whether the government publishes a transparent cost calculation, protects small merchants and keeps person-to-person transfers free. Until then, a legal power is not an actual charge.
Sources (4): timesofindia.indiatimes.com, rediff.com, rediff.com (2), rediff.com (3)
This story was synthesised by AI from the 4 sources linked above.
