JAIPUR, SEP 17 (PTI): Former Rajasthan chief minister Ashok Gehlot on Thursday accused the Centre of changing its stand on charges for UPI transactions under pressure from the United States and claimed the move would hurt ordinary consumers and small traders.
In a post on X, the senior Congress leader sought to draw a chronology between the Centre’s earlier stand on Merchant Discount Rate (MDR) on UPI transactions, a US Trade Representative report and the government’s latest decision.
Gehlot said the Union Finance Ministry had on June 11, 2025, termed reports about imposition of MDR on UPI transactions “false, baseless and misleading” and reiterated the government’s commitment to promoting digital payments.
He claimed that in March this year, the Office of the United States Trade Representative (USTR) flagged India’s UPI policy as being disadvantageous to US payment companies such as ‘Visa’ and ‘Mastercard’.
Gehlot alleged that the Centre subsequently announced a 0.4 per cent charge on UPI transactions above Rs 2,000 in September. “The people of India must understand this chronology,” Gehlot said.
He alleged that the government changed its position within months under pressure from the US government and American companies.
Gehlot also referred to Congress leader Rahul Gandhi’s criticism of the Centre and alleged that the government was acting at the behest of the US rather than in the interests of Indian citizens.
He claimed the decision would ultimately benefit American payment companies while putting the burden on consumers and small businesses. From October 15, a 0.4 per cent MDR will apply to person-to-merchant UPI payments above Rs 2,000. The charge will be paid by merchants, not consumers, and will be capped at Rs 300 for transactions of Rs 75,000 or more.
Payments between individuals, as well as the vast majority of everyday merchant payments, will remain free.
