UPI's Free Ride Faces Its First Real Test

The government has finally pulled the trigger on a framework to charge for UPI, passing the Taxation and Other Laws (Amendment) Bill 2026 to enable a Merchant Discount Rate (MDR) on select business transactions. This isn't a user fee — it's a 0.25% to 0.4% charge on business payments above ₹2,000, while person-to-person transfers and small merchants remain shielded. The move addresses a long-standing sustainability issue for the UPI ecosystem, which has been burning cash...