‘Compromised PM Modi again surrendering to US pressure’ : Rahul Gandhi on govt UPI move
Congress leader Rahul Gandhi on Tuesday alleged that the Modi government has paved the way for imposing charges on UPI transactions above Rs 2,000, accusing it of weakening the existing zero-MDR framework.
Gandhi said transactions above Rs 2,000 could now attract Merchant Discount Rate (MDR) charges on merchants and argued that the cost could eventually be passed on to customers through higher prices.
“Compromised PM Modi is once again surrendering to American pressure,” Gandhi alleged in a post on X, claiming US payment companies had long opposed India’s zero-MDR policy.
Congress general secretary Jairam Ramesh also questioned the government's latest notification, saying it specifically prohibits charges on UPI transactions up to Rs 2,000 but does not explicitly protect transactions above that amount.
The Congress alleged that the move could eventually lead to wider charges on digital payments and questioned whether the policy was intended to open India's digital payments sector to American companies.
The government's notification, dated September 14, states that banks and payment system providers cannot impose direct or indirect charges on UPI or RuPay debit card transactions of up to Rs 2,000.
The notification follows an amendment to Section 10A of the Payment and Settlement Systems Act, 2007, which creates an enabling framework for imposing MDR on UPI and other notified electronic payment modes.
The government has said the NPCI-led UPI and Services Steering Committee will decide the MDR rates. It has argued that charges are needed to support investments in cybersecurity, fraud prevention and infrastructure as transaction volumes rise.
Finance Minister Nirmala Sitharaman has also clarified that MDR applies to merchants and not customers, saying the charges would help banks and fintech companies invest in infrastructure, innovation and security.
The government has so far maintained that customers will not be charged for UPI transactions.
