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Parliament clears path for possible UPI MDR
The Hindu··11 Aug
Parliament cleared the Taxation and Other Laws Amendment Bill, 2026, amending payment settlement law so government can notify which electronic transactions may attract charges. Finance Minister Nirmala Sitharaman said consumers will not pay a UPI fee under the Bill itself. No MDR framework has been finalised; an NPCI-led committee would decide later on any merchant charges.
Prism
What It Means For You
- Daily UPI users can note the finance minister's statement that the Bill itself does not charge consumers.
- Small merchants can watch whether any future MDR stays limited to larger businesses and higher-value payments.
- Taxpayers can recall existing subsidies already support part of the zero-MDR system.
What's Happening
- An amendment to payment settlement law lets the government notify which electronic payments may face charges.
- Sitharaman said UPI remains free for consumers and that no MDR framework is final yet.
- Editorial and government notes discuss possible future fees mainly for larger merchants and bigger tickets.
How Zero-MDR Became a Fiscal and Industry Question
- Before the amendment, UPI and RuPay debit transactions were expressly protected from charges.
- RBI's governor has said somebody has to pay for maintaining the UPI rails.
- Any MDR decision is expected to go through an NPCI-chaired UPI and Services Steering Committee.
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