Free UPI no longer guaranteed
India, Aug. 8 -- Parliament has removed the legal prohibition on levying charges, replacing it with the govt's power to impose fees through future notifications
The Lok Sabha has passed the Taxation and Other Laws (Amendment) Bill, 2026, by voice vote amid Opposition protests that never became a real debate. Buried inside a broader tax bill was one consequential change: an amendment to Section 10A of the Payment and Settlement Systems Act, 2007 - the provision legally barring banks and payment firms from charging Indians to use UPI. That wall is gone. In its place sits the government's discretion to notify, whenever it chooses, which payment modes may attract a fee.
To be fair, nothing changes today. No Merchant Discount Rate has been a...
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