Archive · 20 Sep 2026
Raj Thackeray Calls New UPI Fee a Digital Trap
Raj Thackeray is protesting a new fee connected to some UPI payments.
The fee is called a Merchant Discount Rate, or MDR.
The article says it would be 0.4% for selected transactions above Rs 2,000.
Thackeray says people were encouraged to use digital payments because they were free.
He believes the government is now charging people after they became used to UPI.
The government says the fee would be paid by merchants, but Thackeray says businesses may pass the cost to customers.
He also criticised an 18% GST applied to the MDR.
He wants traders and shop owners to oppose the new charge.
MNS chief Raj Thackeray criticised the proposed 0.4% MDR on select UPI transactions above Rs 2,000.
Thackeray alleged that free digital payments were promoted before users became dependent on them.
He said merchants could pass the MDR and its 18% GST onto consumers.
Thackeray questioned whether foreign payment companies influenced the policy decision.
He urged traders, small businesses and retail associations to oppose the levy.
- Who
- MNS chief Raj Thackeray, the Union government, merchants and consumers.
- What
- Raj Thackeray criticised the proposed 0.4% Merchant Discount Rate on select UPI transactions above Rs 2,000.
- When
- September 19, 2026.
- Where
- Maharashtra and India.
- Why
- Thackeray says the levy could burden merchants and consumers and contradicts earlier assurances that UPI services would remain free.
Raj Thackeray’s Opposition
Government Position
Who bears the cost?
Raj Thackeray’s Opposition
Thackeray said businesses may pass the MDR and related costs on to consumers because he sees no effective monitoring mechanism.
Government Position
The government position cited in the article is that the MDR burden falls solely on merchants.
Purpose of the policy
Raj Thackeray’s Opposition
Thackeray alleged that citizens were first made dependent on free digital payments and were then subjected to charges.
Government Position
The article reports the introduction of the levy but does not provide a detailed government explanation of its purpose.
Policy transparency
Raj Thackeray’s Opposition
Thackeray questioned the policy’s transparency, cited an earlier promise that UPI would remain free, and raised allegations of foreign influence.
Government Position
The article does not report a response from the government to these allegations.
- Proposed charge
- 0.4% Merchant Discount Rate on select UPI transactions above Rs 2,000.
- Additional tax
- The article says an 18% Goods and Services Tax would apply on top of the MDR.
- Protester
- Raj Thackeray, chief of the Maharashtra Navnirman Sena.
- Main allegation
- Thackeray called the policy a planned “digital trap” for merchants and consumers.
- Government position cited
- The MDR burden is described as falling solely on merchants.
- Requested action
- Thackeray urged traders, small businesses and retail associations to oppose the levy.
- Earlier assurance cited
- A government tweet from August 21, 2022, said UPI services would remain completely free.