UPI GLOBAL -

You mean the **Taxation and Other Laws (Amendment) Bill, 2026**, introduced by Finance Minister **Nirmala Sitharaman**. It is **not a direct UPI-charges bill**, and it does **not currently impose a fee on ordinary UPI users**. [lawbeat](https://lawbeat.in/news-updates/lok-sabha-clears-taxation-bill-2026-banks-payment-apps-allowed-levy-charges-on-upi-transactions-1620169) ## What the bill does The bill amends the **Payment and Settlement Systems Act, 2007**, along with provisions connected to taxation and other financial laws. Its UPI-related change replaces the earlier automatic protection for specified electronic-payment modes with a framework under which the Central Government can notify which modes will continue to be protected from charges. [x](https://x.com/nsitharamanoffc/status/2086795959909183949) In practical terms, this creates an **enabling provision**: the government may later permit a Merchant Discount Rate (MDR) or similar charge in selected circumstances, but a charge begins only after a separate decision, notification, and framework. [lawbeat](https://lawbeat.in/news-updates/lok-sabha-clears-taxation-bill-2026-banks-payment-apps-allowed-levy-charges-on-upi-transactions-1620169) ## What Parliament approved - Nirmala Sitharaman introduced the bill in the Lok Sabha in August 2026. [livemint](https://www.livemint.com/money/personal-finance/taxation-and-other-laws-amendment-bill-lok-sabha-mdr-upi-charges-tax-measures-exemption-foreign-invest-manufacture-boost-11785837662918.html) - The Lok Sabha passed it on August 6, reportedly without detailed discussion because of disruptions. [timesofindia.indiatimes](https://timesofindia.indiatimes.com/india/upi-charges-lok-sabha-passes-bill-for-government-to-make-changes/articleshow/133017916.cms) - The Rajya Sabha later passed it and returned it to the Lok Sabha process as a Money Bill. [indianexpress](https://indianexpress.com/article/india/nirmala-sitharaman-upi-charges-taxation-bankers-books-bill-rajya-sabha-10826940/) - The bill’s passage therefore gives the government legal flexibility; it does **not itself announce a UPI fee or fix a percentage**. ## Will users pay? According to Sitharaman’s clarification, consumers will not pay a UPI transaction charge, and small merchants will not be burdened with MDR under the present proposal. The government has also said that no MDR framework has yet been finalised and that any future proposal would be considered through the UPI and Services Steering Committee under NPCI. [thelogicalindian](https://thelogicalindian.com/no-charges-upi-nirmala-sitharaman-say-121741/) ## Why the controversy? The concern arises because removing or altering the statutory zero-charge protection could make future charges legally possible. Reports have mentioned a possible MDR in the range of **0.25%–0.4% for certain higher-value business transactions**, but that is only a reported possibility—not a charge enacted by the bill. [timesofindia.indiatimes](https://timesofindia.indiatimes.com/india/upi-charges-lok-sabha-passes-bill-for-government-to-make-changes/articleshow/133017916.cms) The government’s argument is that a controlled MDR could help banks, payment-service providers, and fintech companies sustain and expand UPI infrastructure. The opposing concern is that even if consumers are formally exempt, businesses might eventually pass payment costs into prices or restrict convenient digital-payment options. ## Blog-ready explanation > **യുപിഐ ഇടപാടുകൾക്ക് ഉടൻ ചാർജ് ഏർപ്പെടുത്തുന്ന നിയമമല്ല ഇത്.** ധനമന്ത്രി നിർമ്മല സീതാരാമൻ ലോക്സഭയിൽ അവതരിപ്പിച്ച *Taxation and Other Laws (Amendment) Bill, 2026* ഭാവിയിൽ ചില ഇലക്ട്രോണിക് ഇടപാടുകളിൽ Merchant Discount Rate അനുവദിക്കാനുള്ള നിയമപരമായ സാധ്യതയാണ് സൃഷ്ടിക്കുന്നത്. സാധാരണ ഉപഭോക്താക്കൾക്ക് യുപിഐ ഇടപാടുകൾ സൗജന്യമായി തുടരുമെന്ന് ധനമന്ത്രി വ്യക്തമാക്കിയിട്ടുണ്ട്. എന്നാൽ ഭാവിയിൽ വ്യാപാര ഇടപാടുകൾക്ക് ചാർജ് അനുവദിക്കാമെന്ന വ്യവസ്ഥ വന്നതിനാൽ ബില്ലിനെക്കുറിച്ച് ആശങ്ക ഉയർന്നിട്ടുണ്ട്. [indianexpress](https://indianexpress.com/article/india/nirmala-sitharaman-upi-charges-taxation-bankers-books-bill-rajya-sabha-10826940/) One important correction: it is more accurate to call it an **amendment bill with an enabling provision for possible future MDR**, not a bill that has already introduced UPI charges. It amends the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026, and also replaces an earlier Income-tax Amendment Ordinance.