1 hr ago
Rahul Gandhi Warns UPI Notification Could Enable Future Fees
Rahul Gandhi says a new government notification could eventually allow fees on some UPI payments.
UPI is currently free for transactions of all amounts.
The notification clearly protects UPI and RuPay debit-card payments up to ₹2,000 from direct or indirect charges.
It does not clearly explain what will happen to payments above ₹2,000.
Gandhi worries that shops could pass any fees on to customers through higher prices.
The government says the notification supports investment in cybersecurity, fraud prevention and digital infrastructure.
Congress says the change could weaken India’s zero-fee UPI policy.
The government has not said that customers will immediately be charged for UPI payments.
Rahul Gandhi accused the Modi government of opening the door to Merchant Discount Rate charges on some UPI transactions.
He said fees paid by shopkeepers could eventually raise prices for customers, despite the government saying customers would not be charged directly.
A gazette notification bars direct or indirect charges on UPI and RuPay debit-card payments up to ₹2,000.
The notification does not clarify whether transactions above ₹2,000 could attract charges or whether merchants would pay them.
The government said growing transaction volumes require continued investment in cybersecurity, fraud prevention and digital infrastructure.
- Who
- Rahul Gandhi and other Congress leaders criticized the Narendra Modi-led government, which defended the notification.
- What
- The government amended the legal framework and notified protections against UPI and RuPay charges up to ₹2,000, while leaving the treatment of larger transactions unclear.
- Where
- The policy concerns digital payments in India.
- When
- The gazette notification was issued on Monday, and Rahul Gandhi criticized it on Tuesday.
- Why
- The government cited rising transaction volumes and the need to fund cybersecurity, fraud prevention and digital infrastructure; Congress said the change could enable future UPI fees.
Congress criticism
Central government position
Effect of the notification
Congress criticism
Rahul Gandhi and Mallikarjun Kharge said the move opens the way for UPI fees and represents a threat to the zero-MDR policy.
Central government position
The government notification explicitly prevents direct or indirect charges on UPI and RuPay payments up to ₹2,000.
Impact on customers
Congress criticism
Gandhi argued that fees charged to shopkeepers could eventually be added to prices and paid by customers.
Central government position
The government says no fees will be charged to customers, while its statement focused on funding digital-payment infrastructure and security needs.
Transactions above ₹2,000
Congress criticism
Congress interpreted the legal amendment as creating a route for MDR on higher-value merchant transactions and alleged it could benefit American payment companies.
Central government position
The government’s notification, as described in the article, does not state whether charges will apply above ₹2,000 or who would pay them.
Key facts
- Protected payments
- No direct or indirect charges may be imposed on UPI or RuPay debit-card payments up to ₹2,000.
- Current UPI policy
- The article says UPI transactions currently carry no charges regardless of amount.
- Legal change
- The notification followed an amendment to Section 10A of the Payment and Settlement Systems Act, 2007.
- Unresolved issue
- The government did not specify whether transactions above ₹2,000 or merchants would face charges.
- Rahul Gandhi’s claim
- He said transactions above ₹2,000 could become subject to Merchant Discount Rate charges.
- Government rationale
- The Centre cited the need for continued investment in cybersecurity, fraud prevention and digital infrastructure.
Quotes
Rahul Gandhi
Congress MP and Leader of Opposition in the Lok Sabha
“Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure.”
livemint.com
“Now, MDR can be levied on merchant UPI transactions above ₹2,000.”
livemint.com
Sources
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