UPI will remain free for consumers, Nirmala Sitharaman tells Rajya Sabha

Published 10 August 2026 · politics

Amid the Opposition walkout, the Rajya Sabha passed the Bankers’ Books Evidence Bill and returned the Taxation and Other Laws (Amendment) Bill on Monday (August

Amid the Opposition walkout, the Rajya Sabha passed the Bankers’ Books Evidence Bill and returned the Taxation and Other Laws (Amendment) Bill on Monday (August 10, 2026). Countering the Opposition’s charge that the Taxation Bill proposed further burden on small traders and consumers by imposing a tax on Unified Payments Interface (UPI) transactions, Finance Minister Nirmala Sitharaman said they would remain free for consumers. She added that once the Bill was passed, the Payments Corporation of India could finalise the Merchant Discount Rate (MDR), which would be applied to to certain categories of merchant transactions. The Upper House had witnessed disruptions and adjournments in the morning too. Parliament monsoon session: August 10, 2026 CPI(M) member John Brittas moved a statutory motion to disapprove an ordinance brought by the Finance Ministry in June 2026. The statutory motion and the Bill were discussed together. Brittas said there was no need for a hurried ordinance when the House was to meet for the Monsoon Session in July. He accused the government of being subservient to the United States and said the charges of UPI transactions were based on the U.S. diktats. He said it would create difficulties for small trades. “The Prime Minister promised that UPI will be free for everyone,” he reminded the government.

The Opposition members had walked out soon after Mr. Brittas moved his statutory motion. Mr. Brittas later returned to reply to the debate on the motion, which was objected by BJP members. During the debate, AAP member Sanjay Singh said the new Bill would create problems for the public as digital transactions had become a part of trade and commerce. Countering all these arguments, Ms. Sitharaman said UPI had remained free for consumers since its launch, and every Indian would continue to make instant digital payments without paying a transaction charge. “Will consumers pay any UPI charge? No, consumers will not have to pay any charges on UPI transactions,” she said. Adding that vast majority of merchant transactions, including low-value transactions to roadside vendors, would continue to remain free. ‘An enabling provision’ She said the new legislation, which was passed in the Lok Sabha last week, would amend Section 10A of the Payment and Settlement Systems Act, 2007, and it was an enabling provision and it did not impose any tax or transaction charge on UPI users. “The Bill enables the government to specify, through notification, the electronic payment modes that will continue to receive statutory protection against charges. Once the Bill is passed by Parliament, the UPI and Services Steering Committee headed by NPCI will consider and decide whether any MDR should be introduced and, if so, its scope and structure,” the Finance Minister said, adding that any future MDR would apply only to a limited category of merchant transactions above a prescribed threshold.