Wire · operational-macro
No Tax Or Transaction Charge On UPI; NPCI Panel To Take Final Call On MDR, Says Sitharaman
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Fusion42 · 24 August 2026 · Fusion42 review
India's Finance Minister Nirmala Sitharaman clarified that the proposed amendment to the Payment and Settlement Systems Act does not impose any tax or transaction charges on UPI users. The decision on introducing a Merchant Discount Rate (MDR) will be made by the NPCI's UPI and Services Steering Committee after parliamentary approval, with most transactions expected to remain free.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
The UPI payments market in India remains broadly free for users and merchants, but you need to prepare for limited MDR charges on bigger merchants if the NPCI panel decides so after legislation. This window lets you strengthen merchant relations and adapt pricing ahead of any MDR introduction.
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1 source · 10 Aug 2026
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