# Rahul Gandhi demands rollback of new UPI merchant fee 2026-09-16T10:07:33+00:00 | Governance | Indian Opinion Desk Corroboration: 4 independent outlets Congress MP Rahul Gandhi on Wednesday demanded the government roll back a new 0.4% merchant discount rate on UPI transactions above Rs 2,000, calling it a "UPI tax." In a video on X, he accused Prime Minister Narendra Modi of surrendering to US pressure and invoked Indira Gandhi's remark about standing straight. Congress social media head Supriya Shrinate said at a press conference that nearly 86% of India's UPI market is held by US firms PhonePe and Google Pay, and linked the fee to a US Trade Representative report criticising India's zero-MDR policy. The government has said the fee applies only to person-to-merchant transactions above Rs 2,000, that 96% of merchant transactions will be unaffected, and that customers will not be charged. It says the move makes the UPI system financially sustainable. An RSS affiliate, the Swadeshi Jagran Manch, has also urged reconsideration. The issue comes amid ongoing India-US trade negotiations. ## Indian Opinion Analysis The Congress's framing links the UPI MDR directly to US pressure and a trade deal, while the government's defence, that 96% of merchant transactions are unaffected, is absent from the opposition's narrative. Neither side addresses the Swadeshi Jagran Manch's critique from the government's own ideological camp, which questions the move on nationalist grounds. The notification's timing, issued late on a Saturday night, is a detail the ruling party has not explained. The trade deal's expected announcement in coming weeks will test the government's claim that this is purely a sustainability measure. ## Coverage - hindustantimes.com (government critical) Leads with Rahul Gandhi's attack, frames as a tax - timesofindia.indiatimes.com (government critical) Foregrounds 'surrendering to US' framing from Rahul - news.abplive.com (neutral report) Straight news bulletin, minimal framing - nationalheraldindia.com (government critical) Heavily leads with Congress's US-allegation and sequence Tags: Narendra Modi, NPCI, Rahul Gandhi, UPI Canonical: https://indianopinion.org/rahul-gandhi-demands-rollback-of-new-upi-merchant-fee/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/rahul-gandhi-demands-rollback-of-new-upi-merchant-fee/#story-in-brief