On UPI fee, Opposition’s protests, Rahul Gandhi’s jibe, government’s response
The Indian government announced a 0.4% merchant discount rate (MDR) on UPI transactions exceeding Rs 2,000, applying only to merchant payments and not to person‑to‑person transfers. Opposition leader Rahul Gandhi criticised the move as a tax, while the Finance Ministry reiterated that UPI remains free for consumers and that most merchants will not be affected.
- ✓The Indian government announced a 0.4% merchant discount rate (MDR) on UPI transactions exceeding Rs 2,000, applying only to merchant payments and not to person‑to‑person transfers.
- ✓Opposition leader Rahul Gandhi criticised the move as a tax, while the Finance Ministry reiterated that UPI remains free for consumers and that most merchants will not be affected.
- ✓Civic Domain: Categorized under politics public notices.
The Finance Ministry confirmed on Wednesday that a new pricing framework will levy a 0.4 per cent merchant discount rate on Unified Payments Interface (UPI) transactions above Rs 2,000, but only when the payment is made to a merchant. The policy does not alter the cost of peer‑to‑peer transfers, and the government dismissed allegations that the decision is driven by foreign influence. Opposition figure Rahul Gandhi responded in a video message, labeling the fee a "tax" that benefits the United States.
According to the ministry’s detailed note, more than 95 per cent of merchant transactions fall below the Rs 2,000 threshold, meaning the majority of users will see no change. Small merchants earning up to Rs 1 lakh per month through UPI QR codes will continue to enjoy zero charges, while larger merchants will bear the 0.4 per cent fee. For essential services such as train ticket bookings, fuel and telecom payments, a flat charge of Rs 5 per transaction will apply once the amount exceeds Rs 2,000.
UPI has been promoted as a free‑to‑use platform for consumers since its launch, and the government emphasized that everyday payments remain charge‑free. The new fee is intended to address revenue concerns without disrupting the user experience for the vast majority of transactions. Critics argue the move could increase costs for larger merchants and signal a shift in the policy’s original consumer‑centric stance, while supporters contend it safeguards the sustainability of the payment ecosystem.
- •Aspirants and citizens are advised to monitor official notices and circulars issued by The Indian Express National.
- •Verify all prescribed eligibility criteria, cutoff dates, and authenticated document requirements prior to formal submissions.
- •Track connected examination timetables, vacancy advisories, and administrative gazettes on SuchnaSetu.
| Issuing Authority | The Indian Express National |
|---|---|
| Topic Category | POLITICS |
| Jurisdiction | All India / National |
| Publication Date | 16 September 2026 |