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.
“The Modi government has quietly opened the door to imposing fees on UPI. So far, there has been no charge on UPI transactions, irrespective of the amount. 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.
Now, MDR (Merchant Discount Rate) 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,” Gandhi, the Leader of the Opposition in the Lok Sabha, posted on X. The Congress’ attack came after the government 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. However, the government has not specified whether charges would be applicable to transactions above Rs 2,000, to be paid by merchants. The amendment Bill was passed by Parliament during the Monsoon Session, which concluded on August 13.
American payment companies have long opposed India’s zero-MDR policy, Gandhi 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.
