Congress Takes Aim at Modi Govt over UPI Notification. ‘Quietly Opens Door to Charges,’ Says Rahul
Congress said the notification leaves room for merchant fees on higher-value UPI payments and warned it could end free digital transactions.
- On September 14, the government issued a notification prohibiting banks from levying charges on Unified Payments Interface transactions up to Rs 2,000, though it did not explicitly protect transactions exceeding this cap.
- The notification follows an amendment to the Payment and Settlement Systems Act, 2007, passed during the Monsoon Session to establish a framework for imposing a Merchant Discount Rate on electronic payments.
- Congress president Mallikarjun Kharge and Rahul Gandhi alleged the policy paves the way for a "Digital Payments Tax," with Kharge characterizing it as "loot" that could harm public savings.
- Although UPI currently operates under a zero-MDR model, MDR could now apply to merchant transactions exceeding Rs 2,000, which Gandhi noted account for nearly 65% of total transaction value.
- Finance Minister Nirmala Sitharaman rejected the opposition's claims, stating the MDR applies only to merchants, not end users, and will support infrastructure and security investments for fintech.
12 Articles
12 Articles
Congress takes aim at Modi govt over UPI notification. ‘Quietly opens door to charges,’ says Rahul
Rahul Gandhi said ‘compromised’ Prime Minister Narendra Modi was ‘once again surrendering’ to American pressure as US payments firms have long opposed India’s zero-MDR policy.
PM Modi surrendering to US pressure: Congress attacks Centre over UPI move - The Tribune
The Congress on Tuesday accused the Prime Minister Narendra Modi- led government of quietly opening the door to charges on UPI transactions above Rs 2,000, with Rahul Gandhi alleging that the policy shift would eventually make consumers pay more and questioning whether New Delhi was yielding to pressure from American payment companies.
Rahul Gandhi on UPI Policy: Big change in UPI transactions. Rahul Gandhi targets the Centre. Attacks Modi as 'compromised'.
The central government's new decision on UPI transactions has sparked a political battle. Transactions up to ₹2,000 will be free of charge, but charges will apply above that amount.
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