Lok Sabha passes Bill enabling Centre to allow UPI charges, MDR on digital payments
- On Thursday, August 6, 2026, the Lok Sabha passed the Taxation and Other Laws Bill, 2026, empowering the government to permit banks and service providers to levy charges on UPI and other notified electronic payment modes.
- The amendment modifies Section 10A of the Payment and Settlement Systems Act, 2007, removing legal provisions that previously barred banks from imposing direct or indirect charges on electronic transactions prescribed under Section 269SU of the Income Tax Act.
- RBI Governor Sanjay Malhotra said Wednesday it is "premature" to discuss Merchant Discount Rate implementation, though he noted maintaining public infrastructure requires funding through either tax models or a "user pays" approach.
- The CPI on Thursday opposed the legislation, labeling the proposed charges a "breach of public trust" and demanding "immediate withdrawal of the proposed legislation," citing the government's prior promotion of UPI as a free utility.
- Passing the bill does not automatically introduce fees; instead, it grants the government authority to permit charges through future notifications. Until such notifications are issued, UPI transactions will continue under the existing framework.
42 Articles
42 Articles
Nirmala Sitharaman Says UPI MDR Charges On Merchants Only; Ashneer Grover Dubs It Regressive
Sitharaman: “The UPI and Services Steering Committee headed by NPCI is yet to decide on the MDR. This will happen after the Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026.”
Fact Check: Nirmala Sitharaman rebuts Jairam Ramesh’s UPI ‘MDR’ claim, says users will not be charged
New Delhi: Union Finance Minister Nirmala Sitharaman slammed Congress leader Jairam Ramesh over his claim that the Modi government’s proposed amendments to the payment systems law could pave the way for charges on UPI transactions, calling the allegation a “canard” and arguing that the proposed changes do not mean that ordinary UPI users will be asked to pay transaction fees. The debate centres on the Taxation and Other Laws (Amendment) Bill, 20…
UPI charges coming? Here's what the government just said: Story in 5 points
Finance Minister Nirmala Sitharaman has clarified on the proposed law changes that would allow the government to charge fees on UPI transactions above Rs 2,000. In an X post, she stated that if such a fee is implemented, it would not impact end users. Here is all you need to know.
FM Sitharaman on MDR: The MDR charge on UPI transactions over ₹2,000 has become a topic of discussion, with Congress targeting the government. Finance Minister Sitharaman has now clarified the situation.
Coverage Details
Bias Distribution
- 60% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
