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 amending the Payment and Settlement Systems Act, 2007, giving the government power to permit banks and payment providers to levy charges on UPI and…
The Story in Brief
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.
The Indian Opinion
The bill has revived fears that UPI will no longer be free for users. But the government has not imposed any charges yet, and the Payments Council of India has assured consumers they will not pay directly. The real test will be whether the government issues a notification imposing MDR, and at what rate, that will decide if digital payments remain affordable for small merchants.
Sources (2): assamtribune.com, hindustantimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
