# Lok Sabha clears law enabling future charges on UPI payments

2026-08-06T14:28:24+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

The Lok Sabha on Thursday passed the Taxation and Other Laws (Amendment) Bill, 2026, enabling the Centre to permit charges on UPI, RuPay and other notified electronic payments. The Bill removes the current legal bar on Merchant Discount Rate, but does not impose any fee. Any charge would require a separate government notification. The Times of India reports that the government may consider a 0.25% to 0.4% MDR on business payments above Rs 2,000, while person-to-person transfers could remain exempt. That proposal has not been formally announced. RBI Governor Sanjay Malhotra called it premature to speculate. The Bill also offers tax measures for electronics manufacturing, foreign investment funds and data centres.

## Coverage

- timesnownews.com <https://www.timesnownews.com/business-economy/economy/upi-charges-back-in-focus-as-lok-sabha-passes-crucial-digital-payments-bill-all-you-need-to-know-article-155323917>
- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/business/india-business/taxation-bill-to-promote-electronic-manufacturing-clears-ls-allows-provision-for-mdr-on-upi-transactions/articleshow/132996585.cms>
- thenewsminute.com <https://www.thenewsminute.com/news/free-upi-may-not-stay-free-lok-sabha-passes-enabling-law>
- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/business/india-business/merchant-charges-for-upi-soon-ls-passes-bill-authorising-govt-to-allow-banks-to-levy-fees-top-facts/articleshow/133008920.cms>
- ndtv.com <https://www.ndtv.com/india-news/lok-sabha-passes-bill-to-allow-charges-on-upi-other-digital-payments-11874925#publisher=newsstand>

Tags: digital payments, Lok Sabha, MDR, Taxation Bill, UPI
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