Now Reading: Lok Sabha Clears Legal Route for Possible UPI Merchant Charges
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Lok Sabha Clears Legal Route for Possible UPI Merchant Charges
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…
The Story in Brief
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.
The Indian Opinion
The loudest claims run in opposite directions: that UPI is being made broadly costly, or that any charge is an attack on ordinary users. Neither is established by this Bill. The law creates permission, not a tariff, and the reported proposal would target a small share of transactions. Still, concerns about small traders and rising banking fees deserve scrutiny. The government’s notification should reveal the rate, threshold, exemptions and who pays before any verdict is reached.
Sources (5): timesofindia.indiatimes.com, rediff.com, rediff.com (2), rediff.com (3), economictimes.indiatimes.com
This story was synthesised by AI from the 5 sources linked above.
Updated: this story now draws on 5 sources.
