# UPI stays free, Parliament passes Taxation Bill

2026-08-10T12:43:08+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Finance Minister Nirmala Sitharaman told Parliament on Monday that consumers will not pay any charge on UPI transactions and that small merchants and kirana stores are exempt from MDR. She was replying to a debate on the Taxation and Other Laws (Amendment) Bill, 2026, which the Rajya Sabha passed by voice vote. The Bill replaces a June ordinance and provides legal backing to the government to modify the zero-MDR framework for UPI and RuPay cards. Sitharaman said the Bill does not impose any tax or transaction charge on UPI and that any future MDR will apply only above a certain high threshold. She also detailed provisions to attract foreign capital for electronics manufacturing and data centres. The Lok Sabha passed the Tribunals Reforms Bill, 2026, without debate amid Opposition sloganeering and was adjourned for the day. Four bills were tabled, including the Kerala (Alteration of Name) Bill, 2026.

## Coverage

- thehindu.com <https://www.thehindu.com/news/national/parliament-monsoon-session-day-16-lok-sabha-rajya-sabha-live-updates-august-10-2026/article71326944.ece>
- hindustantimes.com <https://www.hindustantimes.com/india-news/parliament-monsoon-session-2026-live-lok-sabha-rajya-sabha-opposition-protest-kerala-name-change-ncdc-fcra-amit-shah-101786334000245.html>
- economictimes.indiatimes.com <https://economictimes.indiatimes.com/industry/banking/finance/parliament-clears-taxation-bill-sitharaman-says-upi-transactions-to-remain-free/articleshow/133104930.cms>

Tags: digital payments, MDR, Nirmala Sitharaman, Parliament, Taxation Bill, UPI
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