Lok Sabha Clears MDR Levy On UPI Payments

The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, enabling the government to impose Merchant Discount Rate (MDR) on UPI transactions. Builders and payment orchestrators need to model margin compression on UPI rails and prepare merchants for fee absorption; the revenue is expected to fund bank and fintech infrastructure investment.

Source: Inc42 ↗