New Delhi, 15 September (H.S.): Following the Central Government’s notification keeping UPI payments up to Rs. 2,000 free of charge, Leader of Opposition in the Lok Sabha Rahul Gandhi alleged that the Modi government had quietly opened the way for imposing the Merchant Discount Rate (MDR) on UPI transactions above Rs. 2,000. He said that although such transactions account for around five per cent of the total number of transactions, they constitute nearly 65 per cent of the overall transaction value.

In a post on X on Tuesday, Rahul Gandhi said the government had stated that customers would not be charged for UPI payments. He questioned where the burden would ultimately fall if charges were imposed on merchants. He said such costs could eventually be incorporated into the prices of goods and services, thereby putting an additional burden on consumers.

He alleged that US-based payment companies had long opposed India’s zero-MDR policy and claimed that the government was now opening the way for a policy shift in the same direction. Rahul Gandhi linked the alleged move to US pressure and also questioned the government’s economic policies.

Questioning the possible policy change, he said any alteration to the existing system of keeping UPI free could affect consumers as well as small and large merchants. However, no final decision has so far been announced to impose MDR on all UPI transactions above Rs. 2,000 made by merchants.

It may be noted that the Ministry of Finance has clarified that customers cannot be charged for UPI transactions of up to Rs. 2,000. Following the government’s decision, it is now being speculated that transactions above Rs. 2,000 could be considered for inclusion under a potential MDR framework.

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Hindusthan Samachar / Jun Sarkar