‘Surrendering To American Pressure’: Rahul Gandhi Slams Govt Over UPI Fees

Rahul Gandhi took to Instagram to criticize the central government’s alleged decision to introduce a merchant discount rate (MDR) on Unified Payments Interface (UPI) payments exceeding Rs 2,000. He argued that, although the policy would not charge customers directly, merchants are likely to shift the expense to shoppers by raising prices, thereby undermining India’s zero‑MDR stance.

Gandhi highlighted that transactions above the Rs 2,000 threshold represent just 5% of all UPI payments but account for roughly 65% of the total value transferred through the platform. He cited the government’s statement that the fee would be levied on merchants and warned that the indirect cost could be reflected in higher retail prices. The claim was made in an Instagram post that also referenced the broader debate over UPI fee structures.

The zero‑MDR policy has been a hallmark of India’s digital payments ecosystem, with domestic and international payment companies historically opposing any charges. Gandhi asserted that American payment firms have long resisted the fee‑free model and suggested that the current proposal aligns with their interests, likening it to previous concessions made in the U.S. trade deal. The remarks raise concerns for merchants, consumers, and the political narrative surrounding India’s financial sovereignty.