The Centre has introduced the Payment and Settlement Systems (Amendment) Bill, creating the legal framework for merchant discount rates (MDR) on digital payments. While no decision has been taken on charging UPI transactions yet, the move has brought the possibility a step closer. India's record-breaking UPI payments ecosystem could be on the verge of a major policy shift. Finance Minister Nirmala Sitharaman on Tuesday introduced amendments to the Payment and Settlement Systems Act in Parliament, creating the legal framework for levying MDR on digital payments, including UPI. Unlike credit and debit card payments, where merchants pay processing fees, UPI transactions currently do not attract any merchant charge.