Now Reading: No UPI charges for consumers, small merchants, says FM
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No UPI charges for consumers, small merchants, says FM
Finance Minister Nirmala Sitharaman clarified in the Rajya Sabha that consumers and small merchants, including vegetable vendors and tea stall owners, will not incur any fees for UPI transactions. The statement came…
The Story in Brief
Finance Minister Nirmala Sitharaman clarified in the Rajya Sabha that consumers and small merchants, including vegetable vendors and tea stall owners, will not incur any fees for UPI transactions. The statement came during debate on the Taxation and Other Laws Amendment (ToLA) Bill, which Parliament approved after its return by the Rajya Sabha.
Sitharaman said the Bill is an enabling provision and imposes no tax or charge on UPI users. The government will notify which electronic payment modes remain free. No Merchant Discount Rate (MDR) framework has been finalised yet. Any future MDR will apply only to a limited category of large merchant transactions. The minister noted that UPI processed 2,366 crore transactions worth Rs 29.9 lakh crore in July 2026.
The Indian Opinion
The usual panic about UPI suddenly becoming paid is overblown. Sitharaman has been clear: free for small merchants and consumers. The enabling clause in the ToLA Bill is not a stealth tax, it simply lets the government notify which payment modes stay free. The real test is the NPCI committee's future decision on a limited MDR for large transactions. Will that threshold be set high enough to protect the common user? That number will settle the question.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
