Archive · 16 Sep 2026
Rahul Gandhi Demands Rollback of Proposed UPI Fee
Rahul Gandhi wants the government to cancel a new fee for some UPI payments.
The fee would apply when people pay certain merchants more than Rs 2,000 through UPI.
It is planned to start on October 15.
Payments between two people and many small payments would remain free.
Gandhi says the fee is like a tax on Indians.
He also claims that the decision was made because of pressure from the United States.
Congress says shopkeepers may pass the extra cost on through higher prices.
The government and BJP say customers should not be charged the fee directly.
Rahul Gandhi urged Prime Minister Narendra Modi to withdraw the proposed UPI merchant fee, calling it a “UPI tax.”
The framework sets a 0.4% MDR on specified person-to-merchant UPI transactions above Rs 2,000 from October 15.
Person-to-person payments, small-merchant transactions covered by zero-MDR rules, and UPI payments up to Rs 2,000 are to remain free.
Gandhi and Congress leaders alleged the policy followed US pressure and could ultimately raise costs for consumers.
The BJP said Congress was spreading “fake news” and stressed that consumers would not be directly charged MDR fees.
- Who
- Congress leader Rahul Gandhi, Prime Minister Narendra Modi, Congress leaders, the Bharatiya Janata Party and the Union government.
- What
- The opposition demanded withdrawal of a proposed 0.4% merchant discount rate on specified UPI merchant transactions above Rs 2,000.
- When
- Rahul Gandhi made his demand on Wednesday, September 16; the framework is scheduled to take effect on October 15.
- Where
- Gandhi made his remarks in a video posted on X; the reports were datelined New Delhi, with related comments also reported from Patna.
- Why
- Congress said the fee resulted from US pressure and could be passed on to consumers, while the government said consumers would not be directly charged.
Congress and Opposition Critics
Government and BJP Position
Whether the fee is a tax on consumers
Congress and Opposition Critics
Rahul Gandhi called the measure a “UPI tax” and said fees imposed on shopkeepers would ultimately be added to prices paid by customers.
Government and BJP Position
The government and BJP said consumers would not be charged MDR directly, and banks were advised to prevent merchants from passing it on.
US pressure and foreign companies
Congress and Opposition Critics
Congress leaders alleged that the government acted at the behest of the United States to help American card companies such as Visa and Mastercard compete with UPI.
Government and BJP Position
The BJP rejected Congress’s claims as “fake news”; the reports do not provide a detailed BJP response to the specific allegation about US pressure.
Need for the MDR framework
Congress and Opposition Critics
Congress and other opposition leaders argued that UPI is public digital infrastructure and that the government could cover its operating costs without charging transactions.
Government and BJP Position
The government introduced the framework while keeping person-to-person and many small payments free; it said most merchant UPI transactions would remain unaffected.
- Proposed MDR
- 0.4% on specified person-to-merchant UPI transactions above Rs 2,000
- Start date
- October 15
- Transaction cap
- The fee is capped at Rs 300 for transactions of Rs 75,000 and above
- Exemptions
- Person-to-person transactions and small-merchant transactions covered by the zero-MDR framework remain free
- Government estimate
- Around 96% of merchant UPI transactions will remain unaffected
- Congress position
- Rahul Gandhi and other opposition leaders demanded that the framework be withdrawn
- Government and BJP position
- Banks were advised not to let merchants pass the MDR to customers, and UPI providers were barred from imposing platform or hidden charges
