Now Reading: Rahul Gandhi attacks Modi government over UPI fee notification
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Rahul Gandhi attacks Modi government over UPI fee notification
Congress leader Rahul Gandhi has accused the Modi government of quietly opening the door to charging fees on UPI transactions, alleging Prime Minister Narendra Modi is "compromised" and "surrendering to American pressure".…
Congress leader Rahul Gandhi has accused the Modi government of quietly opening the door to charging fees on UPI transactions, alleging Prime Minister Narendra Modi is "compromised" and "surrendering to American pressure". The attack follows a central government notification that bars banks and payment system providers from imposing charges on UPI transactions up to Rs 2,000 and RuPay debit card payments.
Gandhi said on X that MDR can now be levied on merchant UPI transactions above Rs 2,000. He argued that while these transactions may account for only 5% of volume, they constitute nearly 65% of UPI's total transaction value, and any fee on merchants will ultimately be passed to customers. Congress president Mallikarjun Kharge called the move a "Digital Payments Tax" and accused the government of breaking trust. The government has said the charges are needed for cybersecurity, fraud prevention and infrastructure investment.
The notification follows an amendment to Section 10A of the Payment and Settlement Systems Act, 2007, creating a legal framework for a Merchant Discount Rate on UPI and other electronic payments. The government has not specified whether charges will apply to transactions above Rs 2,000. Congress general secretary Jairam Ramesh said there is no explicit protection for transactions above the cap and that the cap itself could be changed by another notification.
Indian Opinion Analysis
The Congress attack frames the notification as a stealth tax and a capitulation to US corporate pressure, while the government's rationale emphasises sustainability and cybersecurity. Neither side addresses the gap: the notification explicitly bans charges only up to Rs 2,000, leaving transactions above that threshold legally exposed, but the government has not confirmed whether it will impose MDR. The actual test will be the National Payments Corporation of India's decision on MDR rates, which the government has said the UPI and Services Steering Committee will set.
The analysis highlights the differences in framing between the sources, with some emphasizing the government's rationale and others the opposition's criticism.
The government's notification leaves the door open for future charges on higher-value UPI transactions, which the Congress has seized upon as a breach of trust.
Coverage: 3 sources, 2 government-critical, 1 neutral
Sources (3): livemint.com (neutral report), indiatoday.in (government critical), deccanchronicle.com (government critical)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 3 sources.
