Archive · 17 Sep 2026
Opposition Demands Rollback of New UPI Merchant Fee
The government has introduced a new fee for some UPI payments made to merchants.
The fee is 0.4 per cent for transfers above Rs 2,000.
It will begin on October 15.
Everyday payments between two people will not be charged.
Small payments will also remain free.
The Opposition wants the government to cancel the fee.
Rahul Gandhi said Prime Minister Narendra Modi was giving in to US President Donald Trump.
The Congress said the fee followed a US demand to end free UPI merchant payments.
The Opposition demanded that the Modi government withdraw the new UPI merchant fee.
Rahul Gandhi accused Prime Minister Narendra Modi of yielding to US President Donald Trump.
The Congress alleged that the government acted on a US demand to end zero Merchant Discount Rate for UPI.
A 0.4 per cent fee will apply to UPI merchant transfers above Rs 2,000 from October 15.
Person-to-person transfers and small UPI payments were explicitly excluded from the charge.
- Who
- The Opposition, Rahul Gandhi, the Congress, the Modi government, and US President Donald Trump.
- What
- The Opposition demanded the rollback of a 0.4 per cent fee on certain UPI merchant transfers.
- When
- The fee is scheduled to begin on October 15; Opposition criticism intensified on Wednesday after the measure was introduced on Tuesday.
- Where
- India, involving the Union government and UPI transactions.
- Why
- The Congress alleged that the government introduced the fee in response to a US demand to end zero Merchant Discount Rate for UPI.
Opposition Criticism
Government Policy
Whether the fee should be withdrawn
Opposition Criticism
The Opposition demanded a rollback and described the measure as a UPI tax.
Government Policy
The government introduced the fee while excluding person-to-person transfers and small payments from charges.
Alleged US influence
Opposition Criticism
The Congress alleged that the government acted on a US demand to end zero Merchant Discount Rate for UPI. Rahul Gandhi accused Narendra Modi of yielding to Donald Trump.
Government Policy
The measure was introduced by the government, but the articles do not provide a government response to the Opposition's allegation.
- Fee rate
- 0.4 per cent
- Applicable transactions
- UPI transfers above Rs 2,000 made to merchants
- Start date
- October 15
- Excluded transactions
- Person-to-person transfers and small UPI payments
- Opposition demand
- Rollback of the new UPI fee
- Policy issue
- The Merchant Discount Rate regime for UPI
