Lok Sabha passes Bill enabling government to allow MDR on UPI, digital paymentsThe Lok Sabha has passed a Bill amending the Payment and Settlement Systems Act, enabling the government to permit Merchant Discount Rate (MDR) on UPI and other notified digital payment modes. The amendment passed by the House without discussion amid din seeks to remove the existing legal provision that prevents banks and payment service providers from charging Merchant Discount Rate (MDR) on notified electronic payment modes. The proposed changes in Payment and Settlement Systems Act is a part of comprehensive legislation on taxation, which was introduced in the House on Tuesday. The government’s approach aims to levy small charge on digital payment services for consumers and small businesses while ensuring a sustainable revenue model for banks, payment service providers (PSPs), and payment infrastructure firms that drive the digital payments ecosystem. Speaking on the issue RBI Governor Sanjay Malhotra on Wednesday said it is “premature” to talk about MDR on payment through digital means.