Lok Sabha passes bill to allow charges on UPI, digital payments The amendment removes the legal provision that prevented banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes. The government's aim is to establish a sustainable revenue model for banks, payment service providers, and payment infrastructure firms. RBI governor Sanjay Malhotra stated that investment in public payment infrastructure is necessary and someone will have to pay for it, either through taxes or MDR. The changes are part of a comprehensive taxation legislation and seek to address the long-standing demand from bankers and payment industry stakeholders for MDR on digital transactions. 6-Aug-2026 #news #latest #stayupdated
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