Archive · 17 Sep 2026
NC and Congress Split Over Proposed Charges on UPI
The National Conference and Congress are political allies, but they disagree about possible UPI charges.
UPI is used to make digital payments.
Omar Abdullah says businesses that gain a lot from UPI could pay part of the system’s costs.
He says ordinary people should not have to pay for normal use.
He also said person-to-person transfers would not be charged.
Rahul Gandhi disagrees and calls the proposal a tax on Indians.
He has asked Prime Minister Narendra Modi to withdraw it.
The two parties also recently disagreed about how much of Vande Mataram people should sing.
This is their second public disagreement this month.
Jammu and Kashmir Chief Minister Omar Abdullah backed charging businesses that benefit significantly from UPI, while protecting ordinary consumers from fees.
Congress leader Rahul Gandhi opposed the proposal and called it a “UPI tax” on Indians.
Abdullah said person-to-person transfers would not be charged and individual users would face no fee unless they crossed a specified ceiling.
Abdullah argued that businesses should help cover the cost of operating and maintaining the UPI ecosystem.
The dispute is the second public disagreement this month between the National Conference and Congress, following their differing positions on singing Vande Mataram.
- Who
- Omar Abdullah and the Jammu and Kashmir National Conference support charging businesses under certain conditions, while Rahul Gandhi and the Indian National Congress oppose the proposal.
- What
- The parties disagree over a proposed framework for charges on certain high-value Unified Payments Interface transactions.
- When
- The disagreement emerged this month; the articles do not provide an exact date.
- Where
- The dispute concerns India’s Unified Payments Interface system and the National Conference–Congress alliance.
- Why
- Abdullah says businesses should help cover the cost of operating and maintaining UPI, while Gandhi says the proposal amounts to a tax on Indians.
Congress Opposition
National Conference Support for Business Charges
Who should pay
Congress Opposition
Rahul Gandhi opposes the proposal and describes it as a tax imposed on Indians.
National Conference Support for Business Charges
Omar Abdullah says businesses that gain significant benefits from UPI can help pay for its operation and maintenance.
Impact on ordinary users
Congress Opposition
The Congress position calls for the proposed UPI tax to be withdrawn.
National Conference Support for Business Charges
Abdullah says ordinary users should not bear the cost, with no charge for person-to-person transfers and no individual charge below a specified ceiling.
Government criticism
Congress Opposition
Gandhi links the proposal to what he describes as excessive deference by the Narendra Modi government toward the United States.
National Conference Support for Business Charges
Abdullah’s stated rationale broadly matches the government’s explanation that maintaining the UPI system is costly.
- Issue
- A proposed framework for charges on certain high-value UPI transactions.
- Omar Abdullah’s position
- Businesses that benefit significantly from UPI could cover part of its operating and maintenance costs.
- Consumer protection
- Abdullah said ordinary consumers should not bear UPI charges.
- Possible exemptions
- Abdullah said there would be no charge on person-to-person transfers and no charge for individual consumers unless they crossed a specified ceiling.
- Rahul Gandhi’s position
- He opposed the proposal, called it a “UPI tax,” and urged Narendra Modi to withdraw it.
- Alliance context
- The disagreement is the second public difference this month between the National Conference and Congress.
- Earlier dispute
- The parties previously differed over whether people should stand throughout Vande Mataram or only during its first two stanzas.