Can UPI transactions be charged? What Centre's new taxation bill means for users & merchants

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 45 sources have reported it between 19 Jul 2026 and 5 Oct 2026.