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India’s Real-Time Payments System Moves Away From Free Access
Ashwani Mahajan says the fee is unjustified and warns the government should weigh UPI’s savings before changing a zero-charge policy.
- On Wednesday, the Finance Ministry proposed a 0.4% Merchant Discount Rate on UPI payments above ₹2,000, effective October 15, while clarifying individual users will not face charges or quotas.
- Ashwani Mahajan, co-convener of the Swadeshi Jagran Manch , the economic wing of the Rashtriya Swayamsevak Sangh , criticized the proposal on Wednesday, arguing policymakers failed to account for UPI's role in reducing logistics costs and boosting Bharat's competitiveness.
- Mahajan dismissed cybersecurity expenses as standard bank operations, arguing they do not justify the fee. UPI's growth helped India save on foreign exchange by reducing reliance on Visa and Mastercard.
- The SJM urged the government to reconsider the policy, calling the fee 'most unfortunate' and warning against taxing larger merchants for accepting digital payments.
- Opposition MPs also raised concerns regarding the proposed fee, as Mahajan urged policymakers to analyze broader economic savings UPI generates before implementing charges that could undermine the achievement.
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UPI transaction charges: Petrol pump dealers seek full MDR exemption on payments above ₹2,000
UPI transaction charges: Petrol pump dealers have requested government intervention to eliminate MDR on UPI transactions exceeding ₹2,000, arguing that high fees undermine their income and run counter to efforts to promote digital payments.
·New Delhi, India
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Total News Sources22
Leaning Left2Leaning Right5Center3Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 20%
C 30%
R 50%
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