India denies US pressure on new UPI MDR policy
India
India's government is pushing back against claims that the new Merchant Discount Rate (MDR) on some UPI transactions was due to US pressure.
Officials say the policy, meant to keep digital payments running smoothly, was made independently, even as Congress accused them of favoring American card companies by ending zero-MDR.
Merchants face 0.4% on UPI transactions
Starting September 15, merchants will pay a 0.4% fee on UPI payments over ₹2,000 from October 15 onward, but regular users won't be charged anything, UPI stays free for you.
While the Congress called it a "Modi tax" and Rahul Gandhi claimed it helps the US the government and BJP insist this is just about making digital payments sustainable for everyone.