# Lok Sabha clears bill allowing charges on UPI payments

2026-08-07T06:16:17+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Lok Sabha on Thursday passed a Bill amending the Payment and Settlement Systems Act, 2007, giving the government power to permit banks and payment providers to levy charges on UPI and other notified electronic payments. The Bill removes the legal provision that prevents banks from charging Merchant Discount Rate (MDR) on these modes. UPI transactions have been free since launch. Finance Minister Nirmala Sitharaman moved the Bill, which was passed by voice vote amid din. The Payments Council of India said consumers will not face charges; any merchant fees would be commercial arrangements. The Bill now moves to the Rajya Sabha.

## Coverage

- assamtribune.com <https://assamtribune.com/national/govt-gets-power-to-notify-charges-on-upi-payments-as-lok-sabha-clears-bill-1615296>
- hindustantimes.com <https://www.hindustantimes.com/india-news/can-banks-charge-for-upi-payments-now-what-we-know-lok-sabha-tax-amendment-bill-merchants-digital-payments-101786109918880.html>

Tags: digital payments, Lok Sabha, MDR, RBI, UPI
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