Economy
Lok Sabha passes Bill allowing banks to levy UPI transaction charges
TheWire1h
THE BRIEF
1
The Lok Sabha passed the Taxation and other Laws (Amendment) Bill, 2026, on August 6, removing legal barriers that previously prevented banks from charging for UPI and digital transactions.
2
The amendment replaces Section 10A of the Payment and Settlement Systems Act, 2007, granting the government power to specify electronic payment modes that may attract charges.
3
The Bill also extends income tax exemptions until 2041 for foreign companies engaging contract manufacturers in India for electronics production like mobile phones and laptops.