Economy
Lok Sabha Passes Bill Allowing Banks to Levy UPI Transaction Charges
The Hindu1h
THE BRIEF
1
The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, on August 6, 2026, enabling the government to permit banks to levy charges on UPI and other electronic payment modes.
2
The amendment modifies Section 10A of the Payment and Settlement Systems Act, 2007, removing the existing legal prohibition that prevented banks and service providers from charging Merchant Discount Rates on electronic transactions.
3
Finance Minister Nirmala Sitharaman introduced the legislation, which also extends income tax exemptions for foreign companies engaging contract manufacturers in India for electronics production until the 2040-41 fiscal year.