New Delhi: The Lok Sabha on Friday passed a Bill amending the Payment and Settlement Systems Act, 2007, paving the way for the introduction of charges on UPI and other notified electronic payment modes.

The amendment empowers the Central Government to authorise banks and other payment service providers to levy charges on transactions carried out through UPI and other specified digital payment platforms.

The move marks a significant policy shift and could alter the way millions of people across India use digital payment services. While the Bill enables the government to permit such charges, the nature, rate, and implementation of any fees will depend on future notifications and regulations.

The amendment is expected to have a wide-ranging impact on India’s digital payments ecosystem, where UPI has become the country’s most widely used payment platform. The Bill will now proceed to the Rajya Sabha for consideration before it can become law.