Congress leader Rahul Gandhi on Tuesday alleged that the Centre’s latest notification on UPI transactions had opened the way for merchant discount rates (MDR) to be imposed on transactions above Rs 2,000, accusing Prime Minister Narendra Modi of “once again surrendering to American pressure”.
Gandhi claimed the move would eventually burden consumers even if charges were levied only on merchants. “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,” he said in a post on X.
“The government says no fees will be charged to customers. But where will the fees imposed on shopkeepers ultimately come from? Added to the prices, straight out of the customer's pocket,” Gandhi said.
He alleged that American payment companies had long opposed India’s zero-MDR policy and claimed the government had now created a route to change it.
“Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure,” the Leader of Opposition in the Lok Sabha said.
The Congress also accused the government of lacking transparency and said the move could undermine public trust in UPI.
The party’s criticism came after the government directed banks and payment system providers not to levy charges on UPI transactions of up to Rs 2,000 or on payments made through RuPay debit cards.
The government notification, however, does not specify whether charges can be imposed on UPI transactions above Rs 2,000, including those paid by merchants. UPI transactions have so far carried no charges, irrespective of their value.
(With inputs from PTI)