CPI(M) opposes MDR on UPI transactions
The Polit Bureau of the Communist Party of India (Marxist) (CPI(M)) has expressed strong opposition to the Union Government’s proposal to levy charges on Unified Payments Interface (UPI) transactions, alleging that the move breaches the Government’s earlier commitment to keep the digital payment platform free.
In a statement, the CPI(M) said that under the Digital India initiative, the Narendra Modi-led Government had aggressively promoted digital payments and UPI as a free public utility.
The party noted that Prime Minister Narendra Modi had repeatedly urged citizens, small traders and businesses to shift from cash to digital transactions and had even appeared in advertisements, including those of a private payments company, promoting UPI. It also said that the promotion of digital payments was presented as one of the justifications for the 2016 demonetisation exercise.
The party alleged that after encouraging widespread adoption of UPI, the Government is now attempting to convert the public digital payments infrastructure into a source of revenue by proposing transaction charges.
According to the CPI(M), the move amounts to a breach of public trust, as the Government had consistently maintained that UPI services would remain free for users.
The party further argued that the proposal should be viewed alongside what it described as a steady rise in banking-related charges over the past decade.
It cited penalties for non-maintenance of minimum account balances, higher charges for ATM transactions beyond prescribed limits, debit card maintenance fees and SMS alert charges as examples that have made access to essential banking services more expensive.
The CPI(M) demanded the immediate withdrawal of the proposed legislation to impose charges on UPI transactions.
It also asserted that UPI should remain a free, universal and publicly accountable digital payment system accessible to all citizens.
