Now Reading: UPI stays free, Parliament passes Taxation Bill
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UPI stays free, Parliament passes Taxation Bill
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…
The Story in Brief
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.
The Indian Opinion
The Finance Minister's repeated assurance that UPI will stay free is welcome, but the enabling provision in the Bill to let the government decide which modes remain free has naturally stoked public anxiety. Some are already spinning this as a backdoor to charges, while others dismiss all concern as unnecessary panic. The real test will be the notification the government eventually issues, specifically, the threshold for any future MDR and whether it exempts small merchants as promised. Until that paper is out, the debate is just speculation.
Sources (3): thehindu.com, hindustantimes.com, economictimes.indiatimes.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
