# Lok Sabha Passes Bill Clearing Path For Possible UPI MDR

2026-08-06T17:30:13+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Lok Sabha on August 6 passed the Taxation and Other Laws (Amendment) Bill, 2026, allowing the government to later modify the zero-MDR framework for UPI and RuPay transactions. The Bill now goes to the Rajya Sabha. Finance Minister Nirmala Sitharaman said MDR applies to merchants, not customers, and that no rate has been decided. She said an NPCI-headed committee will consider MDR after Parliament passes the legislation. Inc42 reports that UPI transactions reached 23.66 billion in July, worth Rs 29.88 lakh crore. It also cited expectations of a 0.25% to 0.4% MDR on business transactions above Rs 2,000, while peer-to-peer payments may remain exempt. RBI Governor Sanjay Malhotra said consumers ultimately pay transaction costs in some form.

## Coverage

- ndtvprofit.com <https://www.ndtvprofit.com/business/spreading-a-canard-sitharaman-rebuts-claims-of-mdr-resulting-in-upi-fees-for-end-users-11876030>
- rediff.com <https://www.rediff.com/business/report/fm-upi-mdr-for-merchants-funds-infrastructure-security/20260806.htm>
- inc42.com <https://inc42.com/buzz/lok-sabha-passes-taxation-laws-amendment-bill-clearing-path-to-levy-mdr-on-upi-payments/>

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