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Wire · operational-macro

UPI Is Still Free. But Could You Pay More Tomorrow? We Explain

8 August 2026 · By · Wire by Fusion42

Published

8 August 2026

Topic

operational-macro

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at ndtv.com →

◆ Verified

Fusion42 · 29 August 2026 · Fusion42 review

The Indian Lok Sabha has passed a Bill amending the Payment and Settlement Systems Act, 2007 to allow banks and payment service providers to charge fees on UPI and other electronic payments, removing the prior prohibition on Merchant Discount Rate charges.

This Wire brief sits within Fusion42's coverage of Fintech.

◆ ◆ The Wire takeaway

Digital payment founders in India now face a new cost dynamic as the government lets banks charge for UPI transactions. You can prepare to reposition your pricing or partnerships ahead of rising transaction fees.

◆ Coverage

1 source · 8 Aug 2026

◆ Related on Wire

◆ Topics

FintechUPIpayment-regulationmerchant-discount-rateIndiadigital-payments