NEW DELHI: Leader of the Opposition in the Lok Sabha Rahul Gandhi criticised the BJP-led central government, saying that it has surrendered to pressure from American payment corporations by reportedly initiating the process of imposing charges on UPI.
In an X post, Gandhi argued that while the government claims consumers will not be charged directly, permitting a Merchant Discount Rate (MDR) on merchant transactions above Rs 2,000 will ultimately lead to higher retail prices.
“The Modi government has quietly opened the door to imposing fees on UPI. 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. The government says no fees will be charged to customers. But where will the fees imposed on shopkeepers ultimately come from? Added to prices, straight out of the customer’s pocket,” he said.
The Congress leader said that the American payment companies have long opposed India’s zero-MDR policy, further alleging that the Modi government has opened the path to changing the policy in exactly that direction.
“Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure,” he said.
The remarks follow the Finance Ministry’s notification stating that UPI transactions of up to Rs 2,000 cannot attract any direct or indirect charge from banks or system providers, effectively keeping around 96 per cent of UPI transactions by volume within the zero-charge threshold.
