UPI charges: Lok Sabha passes bill for government to make changes
The Indian Lok Sabha has passed a bill allowing the government to modify the zero-MDR framework for UPI and RuPay transactions. While the government claims this will encourage investment in fintech infrastructure, the opposition has raised concerns about potential new charges for merchants.
Why it matters
This legislation could fundamentally change the cost structure of digital payments in India, impacting millions of merchants and consumers.
NEW DELHI: The Lok Sabha on Thursday passed a bill that seeks to ease tax rules to attract investments and remove the existing legal provision that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes.The bill — passed without discussion amid din — also proposes to remove the linkage between the Payment and Settlement Systems Act and the I-Tax Act and give legal backing to the government to modify the zero-MDR framework on UPI and RuPay card transactions. Outside the House, however, there was an exchange between FM Nirmala Sitharaman and Congress MP Jairam Ramesh. Ramesh said the bill opens the doors for MDR.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in