UPI charges row: Chidambaram among 5 Congress MPs who had backed revenue framework
A parliamentary Standing Committee on Finance that included Congress MPs such as P Chidambaram submitted a report on August 12, 2026 urging a tiered merchant discount rate (MDR) framework for UPI to address a funding gap despite a Rs 2,000 crore budget allocation. Opposition leader Rahul Gandhi later denounced the 0.4% MDR on transactions above Rs 2,000 as a “UPI tax” and called for its rollback, while the government affirmed the rate will stay in place.
- ✓A parliamentary Standing Committee on Finance that included Congress MPs such as P Chidambaram submitted a report on August 12, 2026 urging a tiered merchant discount rate (MDR) framework for UPI to address a funding gap despite a Rs 2,000 crore budget allocation.
- ✓Opposition leader Rahul Gandhi later denounced the 0.4% MDR on transactions above Rs 2,000 as a “UPI tax” and called for its rollback, while the government affirmed the rate will stay in place.
- ✓Civic Domain: Categorized under politics public notices.
The Standing Committee on Finance, comprising members from both the ruling party and the opposition—including former finance minister P Chidambaram, Manish Tewari, Gaurav Gogoi, Kishori Lal and K Gopinath—presented a report to Parliament on August 12, 2026 that recommends a tiered MDR revenue model for the Unified Payments Interface (UPI). The committee, chaired by BJP MP Bhartruhari Mahtab, argued that a structured fee system is essential for the financial sustainability of the UPI ecosystem and called for immediate notification and implementation of the framework.
The report highlighted a Rs 2,000 crore allocation for the 2026‑27 fiscal year intended to offset costs arising from the zero‑MDR policy on RuPay and low‑value UPI transactions. It projected that UPI could handle up to 150 billion transactions each month and attract an additional 600 million users, yet noted that current government subsidies cover only about 11 % of industry costs and 14 % of potential MDR revenue, creating a structural funding shortfall. The committee also pointed out that statutory provisions already allow calibrated MDR on high‑value transactions, and any delay in operationalising the framework could jeopardise investments in cybersecurity, fraud prevention and network infrastructure.
The political fallout intensified when opposition leader Rahul Gandhi criticized the government’s decision to impose a 0.4 % MDR on UPI transactions exceeding Rs 2,000, labeling it a “UPI tax” and urging Prime Minister Narendra Modi to reverse the move. Gandhi’s remarks, shared in a video on X, referenced former Prime Minister Indira Gandhi and accused the current administration of succumbing to external pressure. The Centre, however, reiterated that the MDR rate will not be rolled back, emphasizing its commitment to the announced policy.
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| Issuing Authority | Times of India National |
|---|---|
| Topic Category | POLITICS |
| Jurisdiction | All India / National |
| Publication Date | 16 September 2026 |