UPI's Free Ride Faces Its Biggest Test as Parliament Opens Door to Merchant Fees

The Lok Sabha on Thursday passed the Taxation and Other Laws (Amendment) Bill, 2026, stripping away the statutory guarantee that kept UPI transactions free since the platform's inception. The bill amends the Payment and Settlement Systems Act, 2007, giving the government authority to permit banks and payment providers to levy Merchant Discount Rate (MDR) on UPI and other electronic payments. Finance Minister Nirmala Sitharaman moved quickly to reassure users, posting on X that "MDR...