The Lok Sabha has passed legislation amending the Payment and Settlement Systems Act, 2007, to remove the legal bar on banks and payment providers collecting merchant discount rates (MDR) on notified electronic modes including UPI. UPI has remained free for consumers since its 2016 launch and without MDR since 2020, though the bill grants the government authority to permit charges without mandating immediate implementation. MDR fees are paid by merchants to banks and processors rather than end users.