India, Aug. 6 -- The Lok Sabha on Thursday (August 6) passed the bill amending the Taxation and Other Laws (Amendment) Bill, 2026, to further amend the Payment and Settlement Systems Act, 2007. The amendments clear the path for the central government to introduce merchant discount rates (MDR) on UPI transactions.

Finance minister Nirmala Sitharaman introduced the bill to amend the Payment and Settlement Systems Act, 2007, today in the Lok Sabha. Now, the bill will be proposed in the Rajya Sabha.

On social media platform X, Sitharaman said, "MDR applies only on the merchants and not on the end users/customers. It will support the banks and fintech to invest more on infrastructure, innovation & security. All users of UPI will reap the ben...