The FM said the charge will apply to merchants and not to users and will help banks and fintech invest in infrastructure and innovation NEW DELHI: The Lok Sabha on Thursday passed a bill that seeks to ease tax rules to attract investments and remove the existing legal provision that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes.The bill — passed without discussion amid din — also proposes to remove the linkage between the Payment and Settlement Systems Act and the I-Tax Act and give legal backing to the government to modify the zero-MDR framework on UPI and RuPay card transactions. Outside the House, however, there was an exchange between FM Join conversationView All Comments →Share your thoughts in the commentsInsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig DevelopmentPost CommentBe respectful · TOI community guidelinesNirmala Sitharaman and Congress MP Jairam Ramesh. Ramesh said the bill opens the doors for MDR. The FM responded, saying the charge will apply to merchants and not to users and will help banks and fintech invest in infrastructure and innovation.“More importantly, the UPI and services steering committee headed by NPCI is yet to decide on the MDR. This will happen after Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026… All this could have been discussed on the floor of the House if your party @INCIndia (Congress) engages constructively in Parliament when the bill was/is tabled,” she said.While leaving person-to-payments outside MDR’s ambit, banks and fintechs may be permitted to charge 0.25% to 0.4% on payments to businesses in excess of Rs 2,000 with an overall ceiling on how much can be charged.Officials have argued that the levy will be lower than what is charged on credit and debit cards, and most merchants will not pass it on to consumers.Get the latest India News and Live updates. Download the TOI app.End of ArticleFollow Us On Social MediaVideos’Cancel Exams, Take Action’: Jharkhand LoP Babulal Marandi Slams Soren Govt, Backs Student ProtestsContent Creator Ayush Rana On Jharkhand Protest Funding, Viral Videos, Dhoni’s Silence & More‘Gen Z Protesters Are Not Anti-National’: RSS’ Mohan Bhagwat Says ‘Protest Is A Way Of Dialogue’Jharkhand’s ‘Sonam Wangchuk 2.0′ Devendra Nath Mahato Enters Day 5 Of Indefinite Hunger Strike Fast’Not Enemies’: Rijiju Meets Rahul Gandhi Over Sansad Logjam, Reacts To Amit Shah Statement DemandAtiq Ahmed’s Youngest Son Abaan Dies In Jhansi Road Accident, Conflicting Accounts Emerge Over Crash‘Youth Wants CJP To Become Political Party’: Dipke, Saurav Das Announce ‘Kya Bolti Public’ CampaignBombay HC Convicts Tehelka Founder Tarun Tejpal In 2013 Sexual Assault Case; Reverses 2021 AcquittalThe Bankipur Effect: How One Bypoll Has Put BJP’s Upper-Caste Strategy Under The SpotlightSupreme Court Frees Man After 22 Years In Jail, Overturns Wrong Conviction123PhotostoriesKahaani Ghar Ghar Kii actress Tina Parekh ditched designer lehenga and lavish venue; opted for a simple wedding surrounded by family in an ashram8 traditional varieties of South Indian idlis that are perfect for breakfastRakul Preet Singh and Jackky Bhagnani look straight out of modern-day ‘Ramayan’ in regal Gopi Vaid ensembles10 trendy three-letter baby names with beautiful meaningsYour 50s could decide how many years you live without dementia: Study says controlling 3 midlife health risks may add up to 12.6 healthy brain yearsJacqueline Fernandez proves charcoal is the new black in a show-stopping Manish Malhotra ensembleNo parenting book can prepare you for this: 7 powerful lessons every parent only learns through experienceNot everything you were taught was meant to set you free: 8 beliefs every woman needs to unlearn to finally live life on her own terms5 simple ways to reheat pizza so it tastes fresh again: Which method works best and why5 subtle signs the universe is preparing you for a new beginning123Hot PicksSaurav DasDelhi rainAbhijeet DipkeRRB ALP CBT 2 answer keyTN Agriculture BudgetTASMAC OnlineAnkur WarikooUPI transactionsGold rate todayTop TrendingAkhilesh YadavNagpur Rape CaseAbhijeet DipkeTasmac Liquor Online PurchaseJPSC ProtestNagpur Rape CaseDelhi Wife MurderAkhilesh YadavTamil Nadu BudgetPraveen Nettaru Murder Case
NEW DELHI: The Lok Sabha on Thursday passed a bill that seeks to ease tax rules to attract investments and remove the existing legal provision that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes.The bill — passed without discussion amid din — also proposes to remove the linkage between the Payment and Settlement Systems Act and the I-Tax Act and give legal backing to the government to modify the zero-MDR framework on UPI and RuPay card transactions. Outside the House, however, there was an exchange between FM
Share your thoughts in the comments
Be respectful · TOI community guidelines
Nirmala Sitharaman and Congress MP Jairam Ramesh. Ramesh said the bill opens the doors for MDR. The FM responded, saying the charge will apply to merchants and not to users and will help banks and fintech invest in infrastructure and innovation.“More importantly, the UPI and services steering committee headed by NPCI is yet to decide on the MDR. This will happen after Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026… All this could have been discussed on the floor of the House if your party @INCIndia (Congress) engages constructively in Parliament when the bill was/is tabled,” she said.While leaving person-to-payments outside MDR’s ambit, banks and fintechs may be permitted to charge 0.25% to 0.4% on payments to businesses in excess of Rs 2,000 with an overall ceiling on how much can be charged.Officials have argued that the levy will be lower than what is charged on credit and debit cards, and most merchants will not pass it on to consumers.
