No question of rolling back UPI charges, says govt as Opposition steps up attack

NEW DELHI, SEP 16 (PTI): The Opposition on Wednesday stepped up its attack on the government over UPI transaction charges, demanding an immediate rollback, even as the government made it clear there was no question of reversing the decision.
Ending nearly six years of fully free UPI payments, the government had on Tuesday introduced a 0.4 per cent fee on transfers worth more than Rs 2,000 made to merchants through the platform from October 15, while ring-fencing person-to-person transactions as well as small payments from any charge.
The finance ministry clarified on Wednesday that there was no foreign influence behind the decision to impose a 0.4 per cent MDR (Merchant Discount Rate) on UPI transactions above Rs 2,000. “Some claims suggest the change is due to foreign influence. This is false. India’s UPI policy decisions are made independently, with the clear goal of building a self-sustaining, inclusive, and affordable digital payments ecosystem,” the finance ministry said in a post on X.
Leader of Opposition in the Lok Sabha Rahul Gandhi accused Prime Minister Narendra Modi of trying to please US President Donald Trump by imposing the charge.
The Congress alleged that the PM “redefined NOTA — Narendra’s Ongoing Trump Appeasement”. Gandhi urged the PM to “stop lying down in front of the US, have a spine, stand up” and roll back the “UPI tax”. “Modi ji, roll back the UPI tax. Now,” Gandhi said in his post on X.
A top functionary, when asked whether the government was considering to roll back the move, said a considered decision had been taken and there was no question of reversing it.
Sources said the decision to impose MDR charges was taken in the larger interest of the UPI ecosystem and to strengthen its safety and security.
The decision to levy charges, as prevalent in other countries, was taken at the time of introduction of the UPI system, sources said, adding that the new MDR framework would make the platform self-sustainable.
The decision evoked strong opposition from several quarters, including traders, shopkeepers and political parties who dubbed the move as ‘Modi Tax’. Traders’ associations said they would push for cash payments to avoid additional costs on digital payments.
“He (Modi) has put a tax on every single Indian person by taxing UPI and giving a huge amount of money to the United States,” Gandhi said in a video in which he is seen standing before a portrait of his grandmother Indira Gandhi.
Communist Party of India (CPI) general secretary D Raja demanded that the government withdraw the “anti-people decision”.
“Charges on UPI usage, a publicly developed payment technology, are deeply unfortunate and have been brought under US pressure,” Raja claimed in a post on X. Congress general secretary in-charge communications Jairam Ramesh asked whether the MDR was announced to enable US card companies to compete with UPI.