Consumers won’t pay UPI charge, says FM Sitharaman as Parliament clears tax Bill

Parliamentary proceedings faced interruptions on Monday as the Rajya Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026 under a voice vote. Finance Minister Nirmala Sitharaman assured that the legislation would not impose any transaction charge on UPI payments for consumers. The Bankers' Books Evidence Bill, 2026, which seeks to allow electronic and digital banking records as legal evidence, was also approved.

Sitharaman clarified that small merchants would not have to pay Merchant Discount Rate (MDR) charges on UPI transactions, as the framework remains to be finalized. The heated debate saw CPI(M) MP John Brittas accuse the government of charging UPI payments due to US pressure and contrast it with PM Narendra Modi's claim of a free public digital payment system.

Sitharaman responded that Brittas was spreading confusion and called communists "total cowards" for lacking the courage to listen to her responses.