Explained | Why UPI payments to large merchants could attract a fee
Finance Minister Nirmala Sitharaman introduced The Taxation and Other Laws (Amendment) Bill, 2026, which could allow banks to charge fees on UPI payments to large merchants. Currently, UPI transactions are subsidized by banks and the government, costing up to ₹20,000 crore annually. If passed, this bill would shift some costs to consumers starting in 2026.