Centre Rejects ‘External Pressure’ On UPI Fee, Says 0.4% Charge Is Needed For Sustainability
The ministry said UPI decisions are independent and that 96% of person-to-merchant transactions will remain unaffected.
- The Ministry of Finance rejected allegations that foreign pressure influenced the new 0.4% UPI MDR policy, asserting decisions regarding merchant transactions over Rs 2,000 are made independently.
- A 0.4% MDR applies to specified person-to-merchant UPI transactions exceeding Rs 2,000 from October 15, designed to fund essential infrastructure, cybersecurity, and fraud prevention within the rapidly expanding payments ecosystem.
- Opposition leaders allege the policy bows to "American imperialism," with Congress general secretary Jairam Ramesh terming it a "digital somersault" and a "Modi tax" on common citizens.
- The Ministry clarified that person-to-person UPI transfers remain free, with government data showing around 96% of person-to-merchant transactions will remain unaffected below the Rs 2,000 threshold.
- Critics argue the move could increase commodity prices and create space for international card networks to compete with UPI, while the government maintains the fee sustains the ecosystem.
12 Articles
12 Articles
The central government has dismissed allegations of foreign pressure regarding its decision to impose a merchant discount rate on UPI. Under the new system, starting October 15th, certain merchant transactions above ₹2,000 will attract a 0.4% MDR, which will be paid by merchants. Payments up to ₹2,000, P2P transfers, and UPI QR payments for small businesses earning up to ₹1 lakh per month will remain free.
Why Opposition Calls New UPI MDR A Surrender To US Pressure
Opposition parties, including Congress, TMC, and RJD, have strongly criticised the government's decision to impose a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000 made to merchants. They allege the move is a result of "American imperialism" and will lead to increased commodity prices, while the government maintains the charge is on merchants and not consumers, with person-to-person transactions remaining free.
Centre Rejects ‘External Pressure’ On UPI Fee, Says 0.4% Charge Is Needed For Sustainability
<p>The Centre on Wednesday rejected allegations that US pressure influenced India's decision to introduce a Merchant Discount Rate (MDR) on certain high-value UPI payments, saying the policy has been framed independently to strengthen the long-term sustainability of the country's digital payments infrastructure.</p> <p>The clarification came amid a political dispute over the government's decision to introduce a 0.4% MDR on specified person-to-me…
Finance Ministry Debunks “external Pressure” Claims, Says Decisions for UPI Made Independently
Get latest articles and stories on Business at LatestLY. The Ministry of Finance on Wednesday, debunked the "external pressure" myth surrounding the revision in UPI transaction frameworks, clarifying that changes in regulations stem entirely from domestic priorities rather than foreign influence. Business News | Finance Ministry Debunks “external Pressure” Claims, Says Decisions for UPI Made Independently.
UPI fee row: Centre denies US influence, says India’s digital payments policy is independent
The Centre has rejected Congress allegations that the new Merchant Discount Rate on select UPI payments was introduced under US pressure. The Finance Ministry said India independently frames its digital payments policy. From October 15, a 0.4% MDR will apply to specified merchant transactions above Rs 2,000, while users remain unaffected.
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