Omar Abdullah, the Chief Minister of Jammu and Kashmir, expressed his support on Wednesday for the government’s decision to implement a 0.4% Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions exceeding ₹ 2,000. However, he emphasized the importance of ensuring that this charge is not passed on to consumers. Abdullah’s remarks highlight ongoing discussions about the impact of financial policies on everyday citizens.
Abdullah Highlights Costs of UPI System
In a recent media interaction in Srinagar, Omar Abdullah emphasized the high costs associated with operating the Unified Payments Interface (UPI) system in India. He remarked, “Also, the truth is that we often fail to properly appreciate things we get for free.” This statement underlines the importance of recognizing the value of services that may seem costless to users.
Secondly, if you and I are sending money to each other, there will be no charge on that either,” Abdullah said on Thursday, as quoted by news agency PTI . Congress leader Rahul Gandhi and several other Opposition leaders had said that the government succumbed to US pressure in making the decision, a claim denied by the finance ministry on Wednesday. In line with the government clarification on the UPI charge, Abdullah also said on Thursday that the fee won’t apply to regular consumers.
However, the National Conference leader also urged the government to ensure that the cost of this charge doesn’t fall in consumers. A day later, Abdullah reiterated support for the merchant fee, stating that businesses and not people will be charged with it. “The order that has now been issued clearly states that this charge cannot be transferred to the customer. The J&K CM’s support for the UPI charge comes at a time when the government is under fire from the Congress over it. “If you and I are sending money to each other, there will be no charge on that either.
Because most of the business transactions are below ₹ 2,000, there is no merchant charge on transactions below ₹ 2,000,. For transactions above ₹ 2,000, there is a charge, but a limit has also been set,” he said.
