Now Reading: Parliament clears Bill; Sitharaman says UPI stays free for all
-
01
Parliament clears Bill; Sitharaman says UPI stays free for all
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…
The Story in Brief
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.
The Indian Opinion
The government says UPI will stay free, but has quietly created a legal mechanism to bring in MDR later. The reassurance sounds sincere for now, but the enabling provision in the Bill gives the executive power to tax digital payments by notification alone, without fresh parliamentary debate. Ordinary Indians using UPI for chai and sabzi need to watch the NPCI steering committee meeting. That is where the real decision on MDR will be made, not in Parliament.
Sources (2): thehindubusinessline.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
