Rahul Gandhi alleges 'US pressure' behind Modi government's UPI move
What's the story
Congress leader Rahul Gandhi has accused the Narendra Modi-led government of giving in to United States pressure after a notification was issued by the Finance Ministry stating that banks and payment system providers cannot impose charges for UPI and RuPay debit card transactions worth less than ₹2,000. The Congress is now questioning if this means higher-value transactions could be charged. Gandhi took to X to express his concerns, saying, "Now, MDR can be levied on merchant UPI transactions above ₹2,000."
Fee concerns
MDR can be levied on UPI transactions above ₹2,000: Gandhi
Gandhi pointed out that even if these transactions constitute only 5% of the volume, they account for nearly 65% of UPI's total transaction value.
He questioned where the fees imposed on shopkeepers would ultimately come from if not from customers.
He said American payment companies have long opposed India's zero-MDR policy and now the government has opened the path to changing the policy.
"Just like....the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure," he alleged.
Fee implications
Jairam Ramesh says new laws being used to charge UPI
Congress general secretary in-charge communications Jairam Ramesh also echoed Gandhi's concerns, saying the Modi government is using new laws to start charging for UPI.
He referred to an amendment to Section 10A of the Payment and Settlement Systems Act, 2007, which allows imposing Merchant Discount Rates (MDR) on electronic payments.
"Tomorrow the cap itself might be changed with another such notification....For all we know, the government can introduce a charge for daily person-to-person transactions as well," Ramesh said.
Official response
Government defends decision
The government has defended its decision to allow MDR on digital transactions, saying it would help banks and fintech companies invest in infrastructure and security.
The government has not clarified whether charges will be levied on transactions exceeding ₹2,000.
So far, there has been no charge for UPI transactions, regardless of the amount.