Lok Sabha Gives Green Signal for UPI Transaction Charges

The Lok Sabha has passed a bill enabling banks to levy charges on UPI transactions by approving amendments to the Payment and Settlement Systems Act, 2007. The legislation grants banks the authority to impose charges on Unified Payments Interface (UPI) transactions, marking a significant policy shift in India's digital payments ecosystem.

According to reports, the bill was passed without an extended discussion in the Lok Sabha. The detailed framework, including the nature of the charges, applicability, and implementation mechanism, is expected to be clarified through subsequent rules or notifications issued by the government or the concerned regulatory authorities.