Rajya Sabha Clears Taxation Bill, Government Rules Out UPI Charges
The Indian Parliament passed the Taxation and Other Laws (Amendment) Bill, 2026, which includes provisions for UPI transactions. Finance Minister Nirmala Sitharaman clarified that the bill is an enabling provision and does not impose new transaction charges or Merchant Discount Rates on UPI users.
Why it matters
This clarifies the government's stance on digital payment costs, ensuring that UPI remains free for consumers and small merchants to encourage continued digital adoption.
Parliament on Monday passed the Taxation and Other Laws (Amendment) Bill, 2026, after the Rajya Sabha returned the Money Bill to the Lok Sabha following discussion, with Finance Minister Nirmala Sitharaman assuring that consumers and small merchants will not have to pay Merchant Discount Rate (MDR) charges on UPI transactions.The Lok Sabha had earlier passed the Bill. As it is a Money Bill, the Rajya Sabha can only make recommendations on its provisions and return it to the Lok Sabha, which may accept or reject those recommendations.Replying to the discussion in the Rajya Sabha, Sitharaman said the UPI-related amendment is only an enabling provision and does not itself impose any tax or transaction charge on users."The enabling provision that we are bringing in today does not impose any tax or transaction charge on UPI users," Sitharaman said, adding that it enables the government to specify through notification the electronic payment…
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