What happened in the Rajya Sabha
The Rajya Sabha passed the Bankers’ Books Evidence Bill and discussed the Taxation and Other Laws (Amendment) Bill. Opposition members disrupted proceedings earlier in the day and the Rajya Sabha witnessed adjournments amid demands for a Home Minister statement on police action during the July 20 protests in Delhi.
UPI charges and MDR: what the Finance Minister said
Union Finance Minister Nirmala Sitharaman responded to criticism that the Taxation and Other Laws (Amendment) Bill could burden small traders and consumers by imposing a tax on UPI transactions. Nirmala Sitharaman stated that UPI would remain free for consumers.
Nirmala Sitharaman also said that after the bill’s passage, the National Payments Corporation of India (NPCI) could finalise Merchant Discount Rate (MDR) for certain categories of merchant transactions. Merchant Discount Rate (MDR) is generally understood as an acceptance-related fee that can be structured so that consumer charges remain low.
Nirmala Sitharaman’s argument also included the claim that a vast majority of merchant transactions—including low-value transactions to roadside vendors—would continue to be free from the consumer point of view.
Related current affairs
- Government assures no charges for UPI users; MDR, if any, will be nominal and threshold-based
- Paying for UPI: removing the free nature would be both unpopular and unfair
- House clears taxation Bill; no UPI payment charge for consumers: FM
- Pay wall: Removing UPI’s free nature will not only be unpopular but also unfair
- RBI says ‘someone will have to pay the cost’ of UPI transactions
- RBI governor says someone must bear the cost of charging for UPI transactions