The Narendra Modi-led government’s latest move on UPI has invited sharp criticism from Rahul Gandhi, who also accused the Prime Minister of being “compromised”.
The government has directed banks and payment system providers not to levy charges on Unified Payments Interface (UPI) transactions of up to Rs 2,000 or on payments made through RuPay debit cards.
But where will the fees imposed on shopkeepers ultimately come from? Now, the Modi government has opened the path to changing the policy in exactly that direction, Gandhi claimed. Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure,” Gandhi claimed. “The Modi government’s loot has now reached UPI. Sky-high inflation has already emptied the common man’s pocket. “Speaking of MDR, doesn’t the government know that this additional burden on merchants will ultimately be recovered from the common consumer’s pocket through price hikes?
Wholesale inflation is near 10%, and the BJP government has planned to impose a ‘Digital Payments Tax’ on the public, aiming to destroy whatever little savings they have left,” Kahrge said in a post on X. The amendment Bill was passed by Parliament during the Monsoon Session, which concluded on August 13. Earlier reporting noted: On X, Rahul Gandhi said transactions above ₹ 2,000 may account for only about 5% of UPI transactions by volume but represent nearly 65% of their total value.
“The government says no fees will be charged to customers. Added to prices, straight out of the customer’s pocket,” Gandhi said. American payment companies have long opposed India’s zero-MDR policy, Gandhi said. “No fees on UPI” has been changed to “no fees on UPI transactions up to Rs 2,000. Kharge said. Following the passage of the Bill, the government had said the UPI and Services Steering Committee, headed by the National Payments Corporation of India (NPCI), would decide on the MDR rates. Explaining the rationale for imposing charges, the government, in a statement, said, with exponential transaction volumes, the system requires significant and continuous upgrades in cybersecurity, fraud prevention, and infrastructure. Earlier reporting noted: ‘Compromised PM Modi again surrendering to US’: Rahul Gandhi says govt ‘opening doors’ for UPI transaction fee The Centre has “quietly opened the door” to imposing fees on UPI transactions above ₹ 2,000, Congress leader Rahul Gandhi alleged on Tuesday. Merchants could eventually pass the cost on to consumers, the Lok Sabha Opposition leader said. He said that even if customers were not directly charged, merchants could recover the fee by increasing prices. Earlier reporting noted: “The government says no fees will be charged to customers. Gandhi said, alleging that this was aimed at changing India’s zero-MDR policy.
