India's lower house of parliament, the Lok Sabha, has passed a tax amendment bill designed to simplify tax rules and attract more investment. The legislation removes a restriction on specific electronic payment options, allowing banks and payment providers to charge merchants for transactions. It also gives the government the power to revise the current zero-MDR (merchant discount rate) scheme for UPI and RuPay payments.
Experts say the amendments reflect a clear policy objective of drawing global capital and business activity into the country. The changes are expected to strengthen the financial sector's infrastructure and encourage innovation in digital payments.
The bill is part of a broader push to make India a more attractive destination for foreign investment. By giving the government more flexibility over payment charges, it aims to balance the interests of banks, payment companies, and merchants while keeping digital transactions widely accessible.
The passage of the bill marks a significant step toward updating the country's tax and payment frameworks to match current economic needs.