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Congress Rejects Claim of Consensus on UPI MDR Proposal
A committee in India discussed ways to pay for the UPI payment system.
BJP MP Bhartruhari Mahtab said the committee’s recommendation was unanimous and included opposition lawmakers.
The Congress party disagreed with him.
Congress MP Manish Tewari said the report only asked the government to explore possible options.
He said the committee did not later approve a fee on UPI payments.
The government is considering fees on some large transactions or merchants.
It is also considering a system that would gradually reduce government financial support.
Some opposition parties claim the proposal could help American payment companies, but this remains their allegation.
BJP MP Bhartruhari Mahtab said Congress and Trinamool lawmakers participated in discussions behind a recommendation involving UPI merchant discount rates.
Congress rejected Mahtab’s claim that the recommendation was unanimous or supported by opposition members.
Congress MP Manish Tewari said the finance committee’s instruction was only to “explore” a self-reliant, tiered revenue model for UPI.
The government said it was examining MDR for certain high-threshold transactions and a tiered incentive system to reduce government support.
Opposition parties allege that UPI fees resulted from US pressure and could benefit Visa, Mastercard and US-owned payment applications.
- Who
- BJP MP Bhartruhari Mahtab, Congress MP Manish Tewari, the Congress, Trinamool lawmakers and the Union Department of Financial Services.
- What
- A dispute over whether a parliamentary finance committee unanimously supported exploring merchant discount rates or transaction fees on UPI payments.
- Where
- The dispute concerns India’s parliamentary Standing Committee on Finance and the Lok Sabha.
- When
- The dispute was reported on Friday; the committee report was issued in March, and the government’s action-taken response was laid before the Lok Sabha on August 12, 2026.
- Why
- The committee was considering ways to create a self-reliant revenue model for UPI and eventually reduce government support.
Congress and Opposition Parties
Bhartruhari Mahtab and Government Position
Whether the recommendation was unanimous
Congress and Opposition Parties
Congress says opposition members did not support a UPI fee merely by failing to register dissent, and calls Mahtab’s characterization unfounded and incorrect.
Bhartruhari Mahtab and Government Position
Mahtab said Congress and Trinamool lawmakers participated in the discussions and that the report was unanimous.
Meaning of the committee’s recommendation
Congress and Opposition Parties
Congress says the report only asked the government to explore possible revenue models and that the proposal to levy a transaction fee never came back before the committee.
Bhartruhari Mahtab and Government Position
The government said it was actively exploring MDR for certain high-threshold transactions or merchants, alongside a tiered incentive structure.
Who could benefit from UPI fees
Congress and Opposition Parties
Opposition parties allege that fees were driven by US pressure to remove competition for Visa and Mastercard and would benefit US-owned payment applications.
Bhartruhari Mahtab and Government Position
The article does not report a direct response from Mahtab or the government to this allegation.
Key facts
- Committee report
- The 32nd report of the Standing Committee on Finance was issued in March.
- Recommendation wording
- The report asked the Department of Financial Services to explore a self-reliant, tiered revenue model to expand UPI.
- Congress position
- Congress says the key word was “explore” and denies that it supported a UPI transaction fee.
- Government options
- The government said it was examining MDR for certain high-threshold transactions or merchants and a tiered incentive structure.
- Committee chair
- Bhartruhari Mahtab heads the Standing Committee on Finance.
- Political dispute
- Congress has opposed both the committee’s recommendations and the proposed MDR levy.
- Opposition allegation
- Opposition parties allege that UPI fees were implemented under US pressure to benefit Visa, Mastercard and US-owned payment apps.
Quotes
Manish Tewari
Congress member of the parliamentary standing committee on finance
“THE KEY WORD IS CURRENTLY EXPLORING. The current proposal to levy a transaction fee or MDR on UPI and other digital payments never came before the committee thereafter. To suggest ‘certain members’ of the Opposition supported the proposal by not dissenting is both unfounded and unfortunate and therefore incorrect.”
telegraphindia.com
Sources
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