Rahul Gandhi Attacks PM Modi Over UPI MDR
Congress leader Rahul Gandhi has attacked Prime Minister Narendra Modi over the introduction of a Merchant Discount Rate on selected UPI transactions, alleging that the government altered its zero-MDR policy under pressure from the United States. The government has rejected the characterisation of the charge as a tax on users.
Rahul Gandhi Targets Modi Over UPI MDR
Gandhi accused the Modi government of yielding to US pressure and urged the Prime Minister to resist demands from Washington over India’s digital payments framework.
The United States has previously raised concerns over Indian policies surrounding UPI and RuPay, arguing that some measures favour domestic payment systems over foreign providers. However, there is no established evidence that the new MDR structure was introduced specifically because of US pressure.
Government Says UPI MDR Is Not a Tax
Under the new framework, a 0.4% MDR will apply to specified person-to-merchant UPI transactions above ₹2,000 from October 15.
Transactions of ₹75,000 and above will have the fee capped at ₹300.
The government has stressed that consumers will not be directly charged the MDR. Person-to-person UPI transfers will remain free, while smaller merchant transactions will continue under the zero-MDR system.
Congress Raises Concern Over Merchant Costs
Gandhi argued that charges imposed on merchants could eventually be passed on to consumers, increasing the effective cost of digital payments.
The government and RBI maintain that MDR revenue is needed to support banks, payment providers and the infrastructure required for UPI’s long-term sustainability.
The dispute has turned UPI pricing into a fresh political issue, with the Opposition questioning both the economic impact of the policy and the reasons behind the change.
