UPI to remain free for users, some merchants may face ‘nominal’ charges, says Centre

On Sunday, India's government clarified that UPI payments will remain free for person-to-person transactions. But some merchants may now face nominal charges under a Merchant Discount Rate, according to Scroll.in. The clarification came after parliament passed the Taxation and Other Laws Amendment Bill twenty twenty-six, allowing banks and payment providers to levy fees on UPI and RuPay debit cards. The finance ministry said these charges will apply only above a certain threshold and at nominal rates. With billions of UPI transactions flowing through India's payment system monthly, the policy affects one of the world's largest real-time payment networks.

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