No UPI Charges For Consumers, Rates Apply Only To Merchants: Sitharaman Clears Air On Tax Bill 2026

Published 7 August 2026 · india

News india No UPI Charges For Consumers, Rates Apply Only To Merchants: Sitharaman Clears Air On Tax Bill 2026 No UPI Charges For Consumers, Rates

News india No UPI Charges For Consumers, Rates Apply Only To Merchants: Sitharaman Clears Air On Tax Bill 2026 No UPI Charges For Consumers, Rates Apply Only To Merchants: Sitharaman Clears Air On Tax Bill 2026 Published By, Last Updated: August 07, 2026, 09:12 IST Nirmala Sitharaman said that the proposed MDR would support banks and fintech to invest more in infrastructure and security Union Finance Minister Nirmala Sitharaman | File image Union Finance Minister Nirmala Sitharaman said Thursday that the Merchant Discount Rate (MDR) on digital transactions applies only to merchants, not to end users or consumers. She said that the proposed rates will support banks and fintech to invest more in infrastructure and security. The remarks followed Congress leader Jairam Ramesh’s claim that the proposed charges would be passed on to ordinary citizens who use Unified Payments Interface (UPI). In a post on ‘X’, Sitharaman criticised Ramesh and accused him of “spreading a canard". “Merchant Discount Rate (MDR) applies only on the merchants and not on the end users/customers. It will support the Banks & Fintech to invest more on infrastructure, innovation & security.

All users of UPI will reap the benefits of this investment", she said. The minister clarified that the MDR remains scanner by the UPI and Services Steering Committee headed by NPCI, which would happen only after Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026. Before spreading a canard, @Jairam_Ramesh ji, please consider this:1. Merchant Discount Rate (MDR) applies only on the merchants and not on the end users/customers. It will support the Banks & Fintech to invest more on infrastructure, innovation & security. All users of UPI… Nirmala Sitharaman (@nsitharaman) August 6, 2026 “More importantly, the UPI and Services Steering Committee headed by NPCI is yet to decide on the MDR. This will happen after the Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026, which proposes to amend Section 10A of the Payment and Settlement Systems Act, 2007", she wrote. Intensifying her salvos against the Congress over the continued disruptions in the Parliament proceedings, Sitharaman wrote: “All this could have been discussed on the floor of the House if your party @INCIndia engages constructively in Parliament when the Bill was/is tabled.

(LS/RS respectively)". What Jairam Ramesh Had Said In a post on ‘X’, Jairam Ramesh had alleged that the burden of MDR would be passed on to common citizens, saying the government’s claim that this is the only way to keep UPI financial sustainable was “entirely wrong". मोदी सरकार द्वारा लाया गया टैक्सेशन एवं अन्य कानून (संशोधन) विधेयक, 2026 उस वैधानिक गारंटी को समाप्त कर देता है, जो अब तक UPI लेनदेन को शुल्क-मुक्त बनाए हुए थी। यह मर्चेंट डिस्काउंट रेट (MDR) लगाने का रास्ता खोलता है, जिसे भविष्य में आसानी से सभी प्रकार के डिजिटल भुगतान पर लागू… pic.twitter.com/QoBN01Nxw2— Jairam Ramesh (@Jairam_Ramesh) August 6, 2026 “The Reserve Bank of India (RBI) has sufficient capacity to maintain the UPI system on a financially sustainable basis without imposing any additional fees on merchants or consumers. In 2025-26, the RBI had transferred a surplus of ₹2.86 lakh crore to the Modi government. Just a small portion of this amount would be enough to support this vital digital public infrastructure", the Congress leader wrote. Lok Sabha Clears Taxation Bill 2026 The Lok Sabha on Thursday, August 6, passed the Taxation and other Laws (Amendment) Bill that replaces the Payment and Settlement Systems Act, 2007.