Leader of Opposition in the Lok Sabha Rahul Gandhi on Tuesday criticised the BJP-led central government over the reported move to allow charges on certain UPI transactions, alleging that the decision would eventually put an additional burden on consumers.
Mallikarjun Kharge also attacks government
Earlier on Tuesday, Congress National President Mallikarjun Kharge also criticised the government over the reported change, alleging that it was looking for new ways to increase the financial burden on people already facing high inflation. He argued that although consumers may not be charged directly, merchants could pass on the additional cost by increasing the prices of goods and services. “The Modi government has quietly opened the door to imposing fees on UPI. But where will the fees imposed on shopkeepers ultimately come from? The Congress leader also alleged that American payment companies have long opposed India’s zero-MDR policy. He claimed that the Modi government had now opened the way for changing that policy in the same direction. Sky-high inflation has already emptied the common man’s pocket.
In a post on X, Gandhi claimed that the government had opened the door to imposing fees on UPI by allowing a Merchant Discount Rate (MDR) on merchant transactions above Rs 2,000. The Finance Ministry’s notification states that UPI transactions of up to Rs 2,000 cannot attract any direct or indirect charge from banks or system providers. This effectively keeps around 96 per cent of UPI transactions by volume within the zero-charge threshold. He said that such transactions may account for only around 5 per cent of the total transaction volume, but represent nearly 65 per cent of UPI’s overall transaction value. Now, MDR can be levied on merchant UPI transactions above Rs 2,000. Even if these transactions account for just 5% of the volume, they make up nearly 65% of UPI’s total transaction value. ‘No fees on UPI’ has been changed to ‘no fees on UPI transactions up to Rs 2,000’. 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. 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. Criticising the proposed notification, Kharge said, “The Modi government’s loot has now reached UPI. 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.
