Crime & Law · India

Lok Sabha Passes Bill Allowing Merchant Charges on UPI Transactions

The Lok Sabha passed the UPI Payment and Settlement Systems bill, which removes a legal provision preventing banks and payment providers from charging a Merchant Discount Rate (MDR) on certain electronic payment modes. Finance Minister Nirmala Sitharaman clarified that any MDR would apply to merchants, not end customers, and is intended to enhance the digital payment ecosystem. The bill passed amid opposition protests. Some reports suggest the move comes amid US pressure for a level playing field.

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