Leader of Opposition in the Lok Sabha Rahul Gandhi on Tuesday criticised the BJP-led central government over the reported move to allow charges on certain UPI transactions, alleging that the decision would eventually put an additional burden on consumers.
In a post on X, Gandhi claimed that the government had opened the door to imposing fees on UPI by allowing a Merchant Discount Rate (MDR) on merchant transactions above Rs 2,000.
Earlier reporting noted: ‘Compromised PM Modi again surrendering to US’: Rahul Gandhi says govt ‘opening doors’ for UPI transaction fee The Centre has “quietly opened the door” to imposing fees on UPI transactions above ₹ 2,000, Congress leader Rahul Gandhi alleged on Tuesday. Merchants could eventually pass the cost on to consumers, the Lok Sabha Opposition leader said. Earlier reporting noted: “The government says no fees will be charged to customers. Gandhi said, alleging that this was aimed at changing India’s zero-MDR policy.
He argued that although consumers may not be charged directly, merchants could pass on the additional cost by increasing the prices of goods and services. But where will the fees imposed on shopkeepers ultimately come from?
Earlier reporting noted: He also accused the Prime Minister Narendra Modi government of responding to pressure from American payment companies.
What is changing for UPI transactions above Rs 2,000?
The Finance Ministry’s notification states that UPI transactions of up to Rs 2,000 cannot attract any direct or indirect charge from banks or system providers. This effectively keeps around 96 per cent of UPI transactions by volume within the zero-charge threshold. Now, MDR can be levied on merchant UPI transactions above Rs 2,000. Even if these transactions account for just 5% of the volume, they make up nearly 65% of UPI’s total transaction value. His remarks were directed at the reported possibility of MDR on higher-value merchant UPI transactions, while the Finance Ministry’s notification continues to bar direct or indirect charges on UPI transactions of up to Rs 2,000.
The government says no fees will be charged to customers. Added to prices, straight out of the customer’s pocket,” Gandhi said. “The Modi government has quietly opened the door to imposing fees on UPI. But where will the fees imposed on shopkeepers ultimately come from? The Congress leader also alleged that American payment companies have long opposed India’s zero-MDR policy. He claimed that the Modi government had now opened the way for changing that policy in the same direction.
Earlier on Tuesday, Congress National President Mallikarjun Kharge also criticised the government over the reported change, alleging that it was looking for new ways to increase the financial burden on people already facing high inflation.
