Wire · regulatory
Can UPI transactions be charged? What Centre's new taxation bill means for users & merchants
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Fusion42 · 5 August 2026 · Fusion42 review
The Indian government is amending the Payment and Settlement Systems Act, 2007, allowing it to selectively impose merchant discount rates (MDR) on UPI and other electronic payments by removing the current prohibition on transaction fees. This change does not immediately introduce charges but grants the Centre regulatory flexibility, potentially affecting merchants while not increasing fees for end users right away.
This Wire brief sits within Fusion42's coverage of Fintech, and 12 sources have reported it between 19 Jul 2026 and 12 Aug 2026.
◆ ◆ The Wire takeaway
You face a regulatory pivot that will let the government decide which digital payments carry fees. Merchants will need to prepare for new cost structures and adjust pricing or customer conversations accordingly.
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12 sources · first reported 19 Jul 2026 · latest 12 Aug 2026
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