{
  "id": 515755,
  "title": "India opens door to digital payment fees",
  "url": "https://urgent.news/2026/08/10/india-opens-door-to-digital-payment-fees",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-10T23:31:24.000Z",
  "source": {
    "name": "RTHK News - Finance",
    "slug": "rthk-news-finance",
    "url": "https://news.rthk.hk/rthk/en/component/k2/1865689-20260811.htm"
  },
  "original_language": "en",
  "account": "India has permitted charging merchant fees for the extensive digital payment system that is crucial to its economy, with nearly 555 million people utilizing it for over trillions of US dollars. Legislation approved on Monday by the parliament's upper house sets the stage for modifying its present fee-less model. The government claims this move could be used to finance infrastructure upgrades and improve cybersecurity. The government-backed Unified Payments Interface (UPI) forms the foundation of India's digital payment system, which is primarily conducted via smartphones. Since its inception in 2016, UPI has experienced exponential growth, with transaction volumes increasing fivefold in the past five years – reaching 241 billion payments worth approximately US$3.3 trillion in the last fiscal year, as per finance ministry reports. The system, which permits payments to be transferred across participating apps and banks, is the largest real-time payment system worldwide by volume, according to the International Monetary Fund (IMF). It processes more transactions than Visa or Mastercard collectively across the globe. The bill alone does not introduce any fees; however, it establishes a legal framework for banks and payment processors to permit charges on UPI transactions from businesses. Finance Minister Nirmala Sitharaman stated that the bill will assist banks and fintech in investing more in infrastructure, innovation, and security. During its passage by the lower house last week, Sitharaman assured the parliament that the bill \"does not impose any tax or transaction charge on UPI users,\" only applying to large merchants for transactions exceeding a specific threshold. The enabling provision introduced today does not impose any tax or transaction charge, she added. Most transactions are small-ticket transfers under 2,000 rupees, as per industry figures. The Indian government has vigorously promoted the system since Prime Minister Narendra Modi's currency purge in 2016.",
  "summary": "India has opened the door for charging merchant fees for using the vast digital payments system central to its economy, used by nearly 555 million people to transfer trillions of US dollars. Legislation, passed on Monday by the parliament's upper house, paves the way to change its zero-fee model, with the government saying it could help pay for improving the infrastructure and bolstering…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}