Now Reading: Lok Sabha clears bill allowing charges on UPI payments
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Lok Sabha clears bill allowing charges on UPI payments
The Lok Sabha on Thursday passed a Bill allowing the Centre to notify charges on UPI and other electronic payment modes. The measure removes the current legal bar on banks and payment…
The Story in Brief
The Lok Sabha on Thursday passed a Bill allowing the Centre to notify charges on UPI and other electronic payment modes. The measure removes the current legal bar on banks and payment service providers levying Merchant Discount Rate on notified digital payments. It was passed by voice vote without discussion amid protests in the House.
The amendment forms part of the Taxation and Other Laws (Amendment) Bill, 2026. UPI payments have so far carried no such charges, unlike RTGS and NEFT transactions, which attract service fees. RBI Governor Sanjay Malhotra said discussing MDR was premature, but argued that payment infrastructure must be funded either through taxes or a user-pays model.
The Indian Opinion
Claims that the Bill immediately imposes a UPI fee are overstated. It gives the Centre power to notify charges, but no rate or start date has been announced. The opposite claim, that payment costs can remain invisible, is also weak, since banks and payment firms still fund the system. The fair test is whether any future MDR protects small merchants and keeps low-value UPI payments affordable. What charge, if any, will the notification set?
Source: assamtribune.com
This story was synthesised by AI from the source linked above.
