Lok Sabha approves bill to allow banks, service providers to levy UPI transaction charges

Lok Sabha on Thursday passed a Bill to amend the Payment and Settlement Systems Act, 2007 that authorises the government to permit banks and other service providers to levy charges on payments through unified payments interface (UPI) and other notified electronic payment modes.

The amendment passed by the House without discussion amid din seeks to remove the existing legal provision that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes.