5 hrs ago
BJP, Congress Clash Over Possible Future UPI Charges
The government issued a new notice about charges for some UPI payments.
It says UPI payments up to Rs 2,000 will remain free.
Payments made using RuPay debit cards will also remain free.
The notice does not clearly say whether merchants might pay charges on larger UPI transactions.
Congress said this could eventually lead to fees connected to UPI payments.
Congress leader Mallikarjun Kharge referred to possible charges of Rs 25 on a Rs 5,000 payment and Rs 50 on a Rs 10,000 payment.
The BJP said those figures were made-up examples and that consumers would not be charged.
It said any future merchant discount rate would apply only to certain merchant transactions.
A panel of banks, payment companies and associations is expected to consider possible charges above Rs 2,000.
The BJP accused the Congress of spreading fake news about possible UPI transaction charges.
The government’s notification guarantees zero charges on UPI payments up to Rs 2,000 and RuPay debit-card transactions.
The notification does not specify whether merchants could face charges on UPI transactions above Rs 2,000.
Congress leaders claimed the notification could pave the way for fees on UPI payments.
The BJP said consumers would pay no charges and cited government incentives supporting the payment ecosystem.
- Who
- The Bharatiya Janata Party and the Indian National Congress, with statements from Rahul Gandhi, Mallikarjun Kharge and Amit Malviya.
- What
- They are disputing whether a government notification on UPI charges could lead to future fees, particularly on transactions above Rs 2,000.
- Where
- New Delhi, India; the statements were posted on X.
- When
- The dispute followed the government’s September 14 gazette notification; the report is dated September 15.
- Why
- The notification explicitly protects certain transactions from charges but does not specify whether merchants could be charged for UPI transactions above Rs 2,000.
Congress’ Concern
BJP’s Response
Whether fees are being prepared
Congress’ Concern
Congress argued that the notification appears to set the stage for people to pay fees for UPI transactions and questioned reports of possible charges on larger payments.
BJP’s Response
The BJP said Congress was spreading fake news and that no government order has fixed charges such as Rs 25 on a Rs 5,000 payment or Rs 50 on a Rs 10,000 payment.
Who would pay a possible MDR
Congress’ Concern
Congress raised concern that UPI users could ultimately face costs if charges are introduced for larger transactions.
BJP’s Response
The BJP said consumers would not pay transaction charges and that any future merchant discount rate would apply only to specific merchant transactions, not consumers.
Meaning of the notification
Congress’ Concern
Congress viewed the notification’s limits as evidence that broader UPI charges could be considered later.
BJP’s Response
The BJP said the notification only clarified zero-charge protection up to Rs 2,000 and that 96 percent of UPI merchant transactions fall within that limit.
Key facts
- Protected transactions
- UPI merchant transactions of up to Rs 2,000 and RuPay debit-card payments are specified as charge-free.
- Consumer charges
- The BJP said consumers pay zero transaction charges and would not be charged MDR.
- Transactions above Rs 2,000
- The notification did not specify whether charges would apply to these transactions, which could be paid by merchants.
- Current UPI policy
- The report says UPI transactions had so far carried no charge regardless of amount.
- Potential charges cited by Congress
- Congress referred to possible charges of Rs 25 on a Rs 5,000 transaction and Rs 50 on a Rs 10,000 transaction.
- UPI committee
- A 22-member UPI and Services Steering Committee, including the Indian Banks’ Association and Payments Council of India, is expected to consider possible charges.
- Government incentives
- The BJP said incentives to the payment ecosystem included Rs 1,389 crore in FY22, Rs 2,210 crore in FY23 and Rs 3,631 crore in FY24.
Quotes
Mallikarjun Kharge
Congress president who questioned the government’s UPI notification
“The finance minister had recently stated in Parliament that no tax or charges would be levied on UPI, but according to several reports a potential collection of Rs 25 on a Rs 5,000 transaction and up to Rs 50 on Rs 10000 could be made”
theprint.in
“The notification dated September 14 merely clarified the ‘zero-charge protection’ for UPI and RuPay transactions up to Rs 2,000. No 0.5 per cent charge has been fixed for UPI payments exceeding Rs 2,000.”
theprint.in
Sources
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