UPI charges: Lok Sabha passes bill for government to make changes

TNN / Aug 07, 2026, 04:58 IST

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The FM said the charge will apply to merchants and not to users and will help banks and fintech invest in infrastructure and innovation

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.

Nirmala Sitharaman and Congress MP Jairam Ramesh. Ramesh said the bill opens the doors for MDR. The FM responded, saying the charge will apply to merchants and not to users and will help banks and fintech invest in infrastructure and innovation.