Congress MP and Leader of Opposition (LoP), Lok Sabha, Rahul Gandhi, on Tuesday launched a scathing attack on the Centre, accusing the -led government of having “quietly opened the door to imposing fees on UPI.”
In a rather lengthy post on X, wrote, “Now, MDR can be levied on merchant UPI transactions above ₹2,000. Even if these transactions account for just 5% of the volume, they make up nearly 65% of UPI’s total transaction value. The government says no fees will be charged to customers. But where will the fees imposed on shopkeepers ultimately come from? Added to prices, straight out of the customer’s pocket.”
He further accused PM Modi of being “compromised”, and wrote, “Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure.”
According to the LoP, US payment companies have been opposing India’s zero-MDR policy. He added that the Modi government has now opened the path to changing the policy in a direction that benefits Americans.
However, Rahul Gandhi was not the only Congress leader to launch an attack on PM Modi. Party president also claimed that the Modi government’s “loot” has now reached UPI.
Gandhi’s post comes after the Centre notified changes concerning transactions. According to PTI, the Central government has directed banks and payment system providers not to impose additional charges on UPI transactions of up to ₹2,000 or on payments made via RuPay debit cards. However, the government did not specify whether these changes would be applicable to transactions above ₹2,000 or whether such charges would be paid by merchants. Currently, there are no charges on UPI transactions, irrespective of the amount.
According to a gazette notification issued on Monday, banks and system providers will not be allowed to levy any direct or indirect charges on individuals making or receiving payments through RuPay debit cards or UPI for transactions of up to ₹2,000.
The notification comes after an amendment to Section 10A of the Payment and Settlement Systems Act, 2007, which creates a legal framework allowing Merchant Discount Rate (MDR) to be charged on UPI transactions and other electronic payment methods notified under the law.
According to reports, the Central government clarified the rationale for levying charges on UPI transactions. In a statement, the government noted that the rapid growth in transaction volumes has increased the need for continuous investment in , fraud prevention measures and digital infrastructure.
It further said the charges were necessary to ensure the sector’s financial sustainability and support market expansion. According to the government, this would require greater competition by encouraging more companies to scale up their operations and adopt sustainable revenue models.
