India's Lok Sabha passes bill allowing merchant fees on UPI payments

The measure could let banks and payment companies charge businesses for accepting UPI, while leaving consumers unaffected.

Summary

India's Lok Sabha has passed a bill that could allow banks and payment companies to charge merchants a fee for accepting UPI payments. The reported change would apply to businesses that accept transactions through UPI (Unified Payments Interface, India real-time payments network), while consumers would not be affected. Merchant discount-style fees are a key revenue mechanism in digital payments, and any shift in UPI pricing could matter for banks, payment firms and merchants because the network has become central to everyday retail transactions in India.

Terms & Concepts
  • UPI: Unified Payments Interface, India real-time payments network
  • merchant fees: Charges businesses pay to accept digital payments