Digital Payment Bill Gets Presidential Approval, Expands Foreign Investment and Streamlines Regulations The President of India has given approval to the digital payment bill, which is now being implemented by the central government. The legislation, part of the 2026 Finance Act, amends key laws including the Payment and Settlement Systems Act 2007, the Income Tax Act 2025, and the Finance Act 2026. The changes aim to boost foreign investment, strengthen domestic manufacturing, simplify data center regulations, and clarify provisions related to UPI (Unified Payments Interface) and RuPay card transactions. Under the revised Payment and Settlement Systems Act, the central government can now notify specific electronic payment methods that can be used for transactions. Starting from the implementation date, the government will not levy fees on online digital payments for the general public, though charges may apply to other transactions. However, the government has clarified that small transactions via UPI will remain free for common users. The bill also introduces significant changes to foreign investment regulations. Foreign investment funds are now required to ensure that the fund’s investors are not residents of India. Additionally, the total investment by Indian residents in such funds cannot exceed 5% of the fund’s total capital. For the first three years, contributions up to 25 crores will not be counted toward this limit. These funds are prohibited from directly or indirectly managing or controlling businesses in India. Fund managers must be registered under specified regulations to operate as either fund managers or investment advisors.#president_of_india #upi #finance_act_2026 #ru_pay #payment_and_settlement_systems_act
