# Parliament clears Bill; Sitharaman says UPI stays free for all

2026-08-10T22:17:46+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

Finance Minister Nirmala Sitharaman told Parliament on Monday that consumers and small merchants, including vegetable vendors and tea stall owners, will not pay any charges for UPI transactions. She clarified that the Taxation and Other Laws (Amendment) Bill, 2026, passed by voice vote in Rajya Sabha, is an enabling provision and does not impose a tax or transaction fee on UPI users. The Bill allows the government to decide which electronic payment modes remain free of charges. The legislation replaces a June 5 ordinance and also aims to attract foreign investment, boost domestic electronics manufacturing, and help foreign cloud companies use Indian data centres. On the issue of Merchant Discount Rate (MDR), Sitharaman said no framework has been finalised yet and that the NPCI-led steering committee will decide on its scope and structure if introduced. UPI processed 2,366 crore transactions worth Rs 29.9 lakh crore in July 2026 alone, she added.

## Coverage

- thehindubusinessline.com <https://www.thehindubusinessline.com/economy/consumers-small-merchants-will-not-have-to-pay-any-charges-on-upi-transactions-says-fm-sitharaman/article71328963.ece>
- livemint.com <https://www.livemint.com/news/india/parliament-clears-taxation-bill-fm-sitharaman-says-upi-will-remain-free-no-mdr-framework-yet-11786367727604.html>

Tags: digital payments, financial inclusion, merchant discount rate, Nirmala Sitharaman, ToLA Bill, UPI
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