India plans digital-payments fee overhaul, offering potential relief for retailers

The Centre is expected to propose a framework that could exempt notified digital payment modes from bank and payment-provider charges, while clarifying merchant discount rate rules. The changes could reduce payment-cost uncertainty for Indian retailers if enacted.

— Filed Mon, 3 Aug, 2026, 17:47 IST · Source NDTV Profit · Updated

The Centre is set to propose tax and regulatory reforms, including a new framework allowing notified digital payment modes to be exempt from bank and payment-provider charges, offering clarity on merchant discount rates for Indian retailers.

Why this matters

The proposed payment-fee changes follow the Rajya Sabha’s MSME Bill to speed supplier payments and arrive as June wholesale inflation reached 9.87%, increasing pressure on retailer costs.

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