Archive · 19 Sep 2026
Congress, Mahtab Clash Over UPI MDR Committee Consensus
A parliamentary committee in India discussed how to help pay for the UPI payment system.
Committee chair Bhartruhari Mahtab said the report was discussed and approved unanimously.
Congress MP Manish Tewari disagreed with how Mahtab described the discussions.
Tewari said the report only asked the government to explore possible ways to raise money.
He said the committee did not later approve a specific UPI fee.
The government is considering fees for some large merchant payments and a system that would gradually reduce government support.
A new framework says some merchant UPI payments above ₹2,000 will have a fee, but shoppers will still use UPI for free.
Opposition parties allege that the fees could help major American payment companies, but this is their claim rather than an established fact.
BJP MP Bhartruhari Mahtab said the finance committee’s report on a UPI revenue model was unanimously adopted after discussions.
Congress MP Manish Tewari rejected the claim that opposition members supported introducing UPI merchant discount rates by not dissenting.
The committee’s March 12, 2026 recommendation asked the Department of Financial Services to explore a self-reliant, tiered revenue model for digital payments.
The government said it was examining MDR for selected high-value transactions or merchants and a tiered system to reduce government support.
The National Payments Corporation of India said select merchant UPI transactions above ₹2,000 will incur 0.4% MDR, capped at ₹300, from October 15, while consumers pay nothing.
- Who
- Bhartruhari Mahtab, Manish Tewari, the Congress, the Parliamentary Standing Committee on Finance, the Department of Financial Services, and the National Payments Corporation of India.
- What
- A dispute over whether the finance committee unanimously supported introducing or exploring merchant discount rates on UPI payments, alongside a new MDR framework for selected merchant transactions.
- When
- The committee recommendation was dated March 12, 2026; the government’s action-taken response was laid before the Lok Sabha on August 12, 2026; the new MDR framework was announced on September 15 and is due to begin October 15.
- Where
- The dispute concerns India’s Parliamentary Standing Committee on Finance and the Lok Sabha.
- Why
- The committee and government are examining ways to make the UPI ecosystem financially sustainable and reduce government support.
Congress and Opposition Critics
Mahtab and Committee Process
Whether the report was unanimous
Congress and Opposition Critics
Tewari said it was incorrect to suggest that opposition members supported the MDR proposal simply because they did not record dissent.
Mahtab and Committee Process
Mahtab said the committee followed its formal process of discussion, written departmental responses, draft circulation, and adoption, and that he believed the report was unanimous.
Meaning of the recommendation
Congress and Opposition Critics
Congress says the recommendation only asked the government to explore a possible revenue model and that a specific transaction fee was not later brought before the committee.
Mahtab and Committee Process
The government’s response says it is examining MDR for selected high-threshold transactions or merchants, along with a tiered incentive structure to phase out government support.
Who could benefit from MDR
Congress and Opposition Critics
Opposition parties allege that UPI fees were introduced under United States pressure and could benefit Visa, Mastercard, and United States-owned payment applications.
Mahtab and Committee Process
The supplied reports do not provide a direct response from Mahtab or the government to that allegation.
- Committee recommendation
- The March 12, 2026 report asked the Department of Financial Services to explore a self-reliant, tiered revenue model.
- Mahtab’s position
- Bhartruhari Mahtab said the report was discussed, adopted through the committee’s formal process, and submitted unanimously.
- Tewari’s position
- Manish Tewari said the key word was “explore” and denied that opposition members supported a specific UPI fee.
- Government options
- The government said it was examining MDR for certain high-threshold transactions or merchants and a tiered incentive structure.
- New MDR rate
- Selected person-to-merchant UPI transactions above ₹2,000 will attract 0.4% MDR, capped at ₹300 per transaction.
- Consumer impact
- Consumers will continue to use UPI without a charge under the new framework.
- Effective date
- The revised MDR framework is scheduled to take effect on October 15.
