The Opposition on Tuesday slammed the BJP government over its decision to introduce a 0.4 per cent Merchant Discount Rate ( MDR ) on UPI payments above ₹ 2,000 made to merchants.
The Congress called it the “Modi tax” and alleged that a “compromised” prime minister had “surrendered” to US pressure.
New UPI Transaction Fee Introduced
The Indian government has announced a new 0.4% Merchant Discount Rate (MDR) charge on Unified Payments Interface (UPI) transactions exceeding ₹2,000. This fee will take effect on October 15, marking a significant policy shift after nearly six years of allowing merchants to process UPI payments without any transaction fees.
These transactions will not be affected by the new charge. The government said small-value transactions of up to ₹ 2,000 make up more than 95 per cent of total P2M volume.
Leader of Opposition (LoP) in the Lok Sabha and Congress MP Rahul Gandhi alleged that the Modi government has quietly cleared the way for UPI charges, while Congress chief Mallikarjun Kharge said the Modi government’s “loot” has now reached UPI. “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,” he said in a post in Hindi on X.
Opposition targets BJP over UPI move
Pawan Khera, Congress’ media and publicity department head and Rajya Sabha MP, said the 0.4 per cent MDR on UPI payments above ₹ 2,000 should be termed the “Modi Tax”. “He popularised UPI, wanted all the credit for building a ‘cashless economy’ — and now he is taxing people for using it,” Khera said on X.
