NEW DELHI: Soon after the levy of Merchant Discount Rate on UPI transactions was deferred, the Congress on Tuesday questioned whether the Modi government was preparing the ground for another U-turn, saying the charges were announced despite earlier denial by the finance minister.
In a major relief to UPI users, the decision to levy an MDR of 0.4 per cent on transactions over Rs 2,000 has been deferred, with the National Payments Corporation of India (NPCI) on Tuesday saying a new date for the implementation will be decided after Diwali.
In a post on X, Congress general secretary Jairam Ramesh said that on August 6, 2026, and again four days later in Parliament, the finance minister denied any plans to impose MDR on UPI.
"But on September 15, 2026, MDR on UPI was announced by the Modi Government. This was a definite U- turn.
"The widespread demand has been to rollback the MDR on UPI. Today, it has been announced that MDR on UPI - that was to come into effect from October 15, 2026 - has been deferred till after Diwali," he said.
"Is the ground being prepared for a U-turn on the U-turn?" Ramesh asked in his post.
Earlier, Ramesh had accused the government of getting new laws "bulldozed" through Parliament to start the process of charging for UPI.
He had shared a notification of September 15 under the amended Payment and Settlement Systems Act, 2007 that prohibits banks and providers from charging only for UPI transactions under Rs 2000 and said, "But there is NO explicit protection for any transaction above this cap."
"The stage is clearly being set for all of us to pay a fee for UPI transactions. Tomorrow the cap itself might be changed with another such notification - there is no longer a guarantee in the law. For all we know, the govt can introduce a charge for daily person-to-person transactions as well," he had earlier alleged.
Ramesh had also accused the Modi government of showing complete lack of honesty and transparency and alleged that it has broken the trust of users, asking whether it is doing so for American companies to appease President Donald Trump.
(With inputs from PTI)