Lok Sabha clears bill that could enable MDR on UPI merchant payments
The Taxation and Other Laws (Amendment) Bill, 2026 could allow the government to introduce MDR on UPI business payments. Reports suggest a 0.25%-0.4% fee may be considered for transactions above ₹2,000, potentially adding payment-acceptance costs for retailers, subject to Rajya Sabha passage and a subsequent government decision.
Lok Sabha passed amendments enabling the government to introduce MDR on UPI merchant payments. A 0.25-0.4% charge is reportedly under consideration for business transactions above ₹2,000, potentially raising payment acceptance costs for Indian retailers.
Why this matters
The bill advances a policy debate following Sitharaman's statements that no UPI MDR decision has been taken and any future levy would target merchants, alongside an editorial advocating a small UPI transaction levy.
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