Economy & Employment · India
New Bill could permit merchant charges on selected digital payments
Published
A taxation amendment introduced in the Lok Sabha would change Section 10A of the Payment and Settlement Systems Act, allowing charges on electronic-payment modes later specified by notification. Reports suggest this could reopen merchant discount fees for some UPI transactions above ?2,000, but no charge has yet been notified.
Why it matters
UPI's zero-fee structure helped small merchants adopt digital payments. New charges could shift costs to businesses or customers, depending on the eventual notification and exemptions.
Evidence assessment
Bar & Bench identifies the Bill and enabling clause, while treating the ?2,000 threshold as reported speculation. Final rules and rates remain undecided.
Medium confidence — The central development is supported by the linked Bar & Bench report, while the stated evidence gaps prevent a high-confidence assessment.
Coverage assessment
Underreported across 1 source desk.
Only one distinct reporting desk is supplied for this event, so wider coverage and independent corroboration cannot be established.