Lok Sabha passes bill allowing fees on UPI, other e-payments
The Lok Sabha passed a bill that authorizes the government to permit banks and other service providers to levy charges on UPI and other notified electronic payment modes.
Until now, UPI transfers were free for users, but this bill removes the ban on fees.
The government says it's about keeping the digital payment system sustainable.
Bill part of wider financial reforms
The Lok Sabha passed the bill without debate, since opposition parties were busy protesting other issues.
While RTGS and NEFT payments already have charges, UPI and other notified electronic payment modes might join the list soon.
RBI Governor Sanjay Malhotra recently said building up digital payment infrastructure is important, but it's still early to talk details like merchant discount rates (MDR).
This move is part of bigger financial reforms to make India a more attractive and predictable place for global capital, manufacturing, and business.