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Lok Sabha passes Bill allowing government to permit charges on UPI and digital payments

The Lok Sabha has passed a Bill amending the Payment and Settlement Systems Act, allowing the government to permit charges on UPI and other notified digital payment modes by removing the legal restriction on Merchant Discount Rate.

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The Lok Sabha on Thursday passed the Taxation and Other Laws (Amendment) Bill, 2026, paving the way for the central government to permit banks and payment service providers to levy charges on Unified Payments Interface (UPI) and other notified electronic payment modes.

The amendment changes provisions of the Payment and Settlement Systems Act, 2007, removing the existing legal restriction that barred banks and payment system providers from charging Merchant Discount Rate (MDR) on specified electronic payment methods.

The Bill was passed by voice vote after the House resumed proceedings at 2 pm following an earlier adjournment.

What changes under the Bill?

The amendment replaces the reference to electronic payment modes prescribed under Section 269SU of the Income Tax Act with a provision allowing the central government to notify one or more electronic payment modes for which charges may be permitted.

The revised provision states that the government may specify the applicable electronic payment modes through an official notification after the law comes into force.

At present, Section 10A of the Payment and Settlement Systems Act prohibits banks and payment system providers from imposing any direct or indirect charges on prescribed electronic payment modes.

Meanwhile, Section 269SU of the Income Tax Act requires businesses with an annual turnover exceeding ₹50 crore to provide specified digital payment options, including BHIM-UPI QR codes and RuPay debit cards.

UPI remains free for now

While RTGS and NEFT transactions already attract service charges in certain cases, UPI payments have so far remained exempt from Merchant Discount Rate (MDR).

The amendment itself does not immediately introduce charges on UPI transactions. Instead, it authorises the government to notify eligible electronic payment modes and permit charges in the future.

Government cites sustainability of digital payments ecosystem

According to the government, the proposed changes aim to create a sustainable revenue model for banks, payment service providers (PSPs) and payment infrastructure companies that support India’s rapidly expanding digital payments ecosystem.

The proposal seeks to balance the interests of consumers and small businesses while ensuring adequate investment in payment infrastructure.

RBI Governor: Too early to discuss MDR rollout

A day before the Bill was passed, Reserve Bank of India Governor Sanjay Malhotra described discussions on imposing MDR on digital payments as “premature”.

He said investment in payment infrastructure must be funded either through taxation or by adopting a “user pays” model through Merchant Discount Rate.

Malhotra noted that the government is currently bringing the legislative amendment and said it would be appropriate to wait for further developments before drawing conclusions.

He also said that under the user-pays principle, the merchant or person using the service bears the cost, whereas in the absence of MDR, the expenses are effectively supported through public taxation.

Industry has long sought MDR on UPI

The question of introducing MDR on UPI has remained a key issue for banks and payment industry stakeholders, who have argued for a sustainable compensation mechanism as digital payment volumes continue to rise.

Some industry observers have suggested that, if introduced in the future, MDR could apply only to higher-value merchant transactions rather than peer-to-peer UPI transfers. However, the Bill does not specify any such threshold or implementation framework.

Entertainment

CID creator BP Singh dies of heart attack, film industry pays tribute

B.P. Singh, the creator and producer-director of CID, has died after suffering a heart attack. His contribution to Indian television has prompted tributes from colleagues and members of the entertainment industry.

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BP Singh

Veteran television producer-director B.P. Singh, best known for creating the popular crime investigation series CID, has died after suffering a heart attack. His death on Tuesday, October 27, prompted tributes from colleagues and members of the entertainment industry, who remembered his contribution to Indian television.

Filmmaker Ashoke Pandit shared the news of Singh’s death in a social media post, remembering him as an accomplished filmmaker whose work had captivated audiences through shows such as CID and Aahat.

Pandit also recalled his association with Singh during the latter’s tenure as president of the Indian Film and Television Directors’ Association. Expressing grief over the loss, he described Singh as a close friend and a person whose work would continue to inspire future generations.

The last rites are scheduled to take place on Wednesday, October 28, according to Pandit’s post.

BP Singh’s contribution to Indian television

Born Brijendra Pal Singh, B.P. Singh established himself as a prominent figure in Indian television through his work as a producer and director. He created CID, one of the country’s longest-running crime investigation shows, which premiered in 1998 and followed a team of Mumbai crime branch officers investigating cases.

The series became widely recognised among television audiences and ran for around two decades. Singh also occasionally appeared on the show as DCP Shamsher Singh Chitrole.

One of the show’s notable milestones came in October 2004, when a special episode was filmed in a single continuous take lasting 111 minutes. The achievement received recognition in the Limca Book of Records and the Guinness World Records.

Singh’s work was not limited to crime dramas. He was also associated with Aahat, a popular horror television series that aired from 1995 to 2015. His other projects included Khaaki, Abhay and SuperCops Vs Super Villains.

Ashoke Pandit remembers the veteran filmmaker

In his tribute, Pandit recalled Singh’s professional achievements and their personal association. He praised the filmmaker’s work on CID and Aahat and expressed condolences to his family and loved ones.

Singh’s death marks the loss of a veteran television professional whose productions helped shape crime and horror programming in India.

His work on CID and Aahat remains a significant part of his legacy in Indian television.

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India News

India invites Pakistan minister Aurangzeb Khan Khichi for SCO forum

India has invited Pakistan’s Culture Minister Aurangzeb Khan Khichi to the SCO Civilisational Dialogue Forum in New Delhi, scheduled for November 20–22. Pakistan’s participation remains unconfirmed.

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India has invited Pakistan’s Minister for National Heritage and Culture, Aurangzeb Khan Khichi, to attend the inaugural Civilisational Dialogue Forum of the Shanghai Cooperation Organisation (SCO) in New Delhi in November.

The invitation comes ahead of the two-day SCO Council of Ministers of Culture meeting scheduled for November 20 and 21. The wider Civilisational Dialogue Forum is expected to take place from November 20 to 22, bringing together representatives of SCO member countries and other invited participants.

However, Pakistan has not yet confirmed whether it will send a delegation to the event. Its government is reviewing the invitation and is expected to decide on participation following internal consultations, according to reports citing diplomatic sources.

What is the SCO Civilisational Dialogue Forum?

The Civilisational Dialogue Forum is an initiative aimed at promoting awareness of the shared civilisational heritage of SCO member countries and encouraging cultural exchanges among them.

Prime Minister Narendra Modi proposed the forum at the SCO leaders’ summit in Tianjin, China, in 2025. The proposal was subsequently adopted by the organisation’s council.

India’s Defence Minister Rajnath Singh announced on October 20 that the country would host the first forum, inviting all SCO member states to participate.

The event is being organised by India’s Ministry of Culture and Ministry of External Affairs. According to reports, it is planned at Purana Qila, the historic fort in New Delhi.

The proposed discussions will cover religious and philosophical traditions, art and architecture, language and literature, manuscript traditions, and cultural expressions and living traditions across participating countries.

India-Pakistan engagement through the SCO

India and Pakistan are both members of the Shanghai Cooperation Organisation, which provides a platform for regional cooperation despite differences between the two countries.

The invitation follows previous high-level engagements between the neighbours under the SCO framework. Pakistan’s then Foreign Minister Bilawal Bhutto-Zardari travelled to Goa in May 2023 to attend an SCO Council of Foreign Ministers meeting hosted by India.

In October 2024, India’s External Affairs Minister S Jaishankar visited Islamabad for the SCO Council of Heads of Government meeting. India also sent its SCO National Coordinator, Alok Dimri, to Islamabad for a meeting in September 2026.

If Khichi attends the November forum, it would mark another ministerial-level visit from Pakistan to India under the SCO framework since the 2023 meeting in Goa. However, his participation has not yet been confirmed.

What happens next?

The immediate development to watch is Islamabad’s decision on whether to send its culture minister or another delegation to New Delhi.

The invitation is part of India’s engagement with the SCO’s multilateral framework. It should not, by itself, be interpreted as confirmation of a separate bilateral diplomatic breakthrough between India and Pakistan.

For now, the forum is scheduled for November, while Pakistan’s final participation remains undecided.

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India News

Cyclone Arnab nears Andhra Pradesh coast, red alert issued

Cyclone Arnab is approaching the Andhra Pradesh coast, prompting a red alert for Andhra Pradesh and adjoining south Odisha. The storm is expected to bring winds of 115–125 kmph, with gusts reaching 140 kmph.

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Cyclone Arnab is moving towards the Andhra Pradesh coast, with the India Meteorological Department (IMD) warning of a very severe cyclonic storm expected to make landfall on Wednesday, October 28. Authorities in Andhra Pradesh and neighbouring Odisha have stepped up precautionary measures as the system approaches the eastern coastline.

The IMD has issued a red-message cyclone warning for Andhra Pradesh and adjoining south Odisha. The storm is expected to cross the Andhra Pradesh and Yanam coasts between Bapatla and Visakhapatnam by the forenoon of October 28, close to Yanam.

At the time of the IMD’s October 27 morning bulletin, the cyclone was centred over the west-central Bay of Bengal, around 260 km southeast of Visakhapatnam. It was moving westwards at approximately 22 kmph during the preceding six hours.

Cyclone Arnab landfall forecast and wind speed

According to the weather department, Cyclone Arnab is expected to cross the coast as a very severe cyclonic storm, with maximum sustained wind speeds of 115–125 kmph and gusts reaching 140 kmph.

The approaching system is also expected to bring heavy to extremely heavy rainfall to parts of Andhra Pradesh. The red alert signals the need for heightened preparedness in areas facing the threat of intense rain and strong winds.

Andhra Pradesh and Odisha step up precautions

Authorities in Andhra Pradesh and Odisha have intensified preparations ahead of the expected landfall. Precautionary measures include school closures in affected areas, restrictions on sea fishing and the deployment of emergency response teams.

The National Disaster Response Force (NDRF) has stationed teams across several locations in Andhra Pradesh, including Kakinada, Konaseema, East Godavari, West Godavari, Krishna and Anakapalli districts. Additional teams have been kept on standby to respond to emergencies.

Officials have also been directed to ensure the availability of essential commodities and the swift restoration of electricity and other essential services in the event of disruptions.

The weather department has warned that the cyclone could cause significant rainfall across parts of the eastern region. Residents in vulnerable coastal areas have been urged to follow official advisories and remain cautious as the storm approaches.

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