Archive · 16 Sep 2026
Rahul Gandhi Targets Modi Government Over Proposed UPI Charges
Rahul Gandhi says the government may allow fees on some UPI payments.
The possible fees would apply to merchant transactions above ₹2,000.
UPI is a digital payment system used in India.
The Finance Ministry says customers cannot be charged directly or indirectly for payments up to ₹2,000.
It says these smaller payments make up about 96% of transactions by volume.
Gandhi argues that shopkeepers could add any fees to the prices of goods.
This could mean customers pay more indirectly.
He also accused the government of responding to pressure from American payment companies.
Mallikarjun Kharge criticized the reported change while discussing inflation.
Rahul Gandhi accused the Modi government of yielding to American payment companies over possible UPI charges.
He said Merchant Discount Rate charges on merchant transactions above ₹2,000 could eventually raise prices for consumers.
The Finance Ministry said UPI transactions up to ₹2,000 cannot attract direct or indirect charges from banks or system providers.
The notification said transactions within the threshold account for about 96% of UPI transactions by volume.
Congress president Mallikarjun Kharge called the reported change a possible digital payments tax amid inflation.
- Who
- Rahul Gandhi and Mallikarjun Kharge criticized the Modi government; the Finance Ministry issued the notification.
- What
- A dispute arose over the reported possibility of Merchant Discount Rate charges on merchant UPI transactions above ₹2,000.
- When
- Tuesday, September 15.
- Where
- India; Gandhi made his remarks in a post on X.
- Why
- Critics said merchant fees could eventually increase consumer prices, while the notification maintained a no-charge threshold for transactions up to ₹2,000.
Critics of the reported change
Government notification
Effect on consumers
Critics of the reported change
Rahul Gandhi and Mallikarjun Kharge argued that fees charged to merchants could ultimately be added to prices paid by consumers.
Government notification
The Finance Ministry notification states that UPI transactions up to ₹2,000 cannot attract direct or indirect charges from banks or system providers.
Scope of the policy
Critics of the reported change
Gandhi said the notification opens the way for Merchant Discount Rate charges on higher-value merchant transactions and could weaken the zero-charge policy.
Government notification
The notification preserves the no-charge threshold for transactions up to ₹2,000, covering about 96% of UPI transactions by volume.
American pressure allegation
Critics of the reported change
Gandhi alleged that American payment companies had opposed India's zero-MDR policy and accused the government of moving in their preferred direction.
Government notification
The articles report Gandhi's allegation but do not provide a government response addressing the claim about American pressure.
- Policy threshold
- UPI transactions up to ₹2,000 cannot attract direct or indirect charges from banks or system providers, according to the Finance Ministry notification.
- Transaction coverage
- The notification said about 96% of UPI transactions by volume fall within the zero-charge threshold.
- Potential MDR scope
- Merchant Discount Rate could reportedly be levied on merchant UPI transactions above ₹2,000.
- Value share cited by Gandhi
- Gandhi said transactions above ₹2,000 may represent about 5% of volume but nearly 65% of total UPI transaction value.
- Consumer impact claim
- Gandhi argued that merchants could pass fees on to customers through higher prices.
- Political criticism
- Kharge described the reported change as a possible digital payments tax amid inflation.
