Lok Sabha passes bill allowing UPI transaction charges

The Lok Sabha on Thursday passed a bill to amend the Payment and Settlement Systems Act, 2007, authorizing the government to permit banks and payment service providers to levy charges on UPI and other notified electronic payment modes. The amendment, passed by voice vote amid disruptions, removes the legal bar on Merchant Discount Rate (MDR) for such payments. The government says it aims to ensure a sustainable revenue model for digital payment infrastructure, while critics warn costs will fall on ordinary users.