Now Reading: Govt rules out UPI fee rollback as Congress cries surrender
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Govt rules out UPI fee rollback as Congress cries surrender
The government has ruled out any rollback of the 0.4% Merchant Discount Rate (MDR) on UPI merchant transactions above Rs 2,000, effective from October 15. A senior official said the decision is…
The government has ruled out any rollback of the 0.4% Merchant Discount Rate (MDR) on UPI merchant transactions above Rs 2,000, effective from October 15. A senior official said the decision is final and in the larger interest of the UPI ecosystem's safety and long-term financial sustainability.
Opposition parties, led by the Congress, have demanded immediate withdrawal, with Rahul Gandhi alleging Prime Minister Narendra Modi is 'prostrating' before US President Donald Trump. The finance ministry denied any foreign influence, saying the decision was made independently. The BJP countered that five Congress MPs, including P Chidambaram, had backed a tiered MDR in a parliamentary panel report.
Retailers, petrol dealers and apparel bodies warned the fee could push merchants back to cash, especially during the festive season. A PIL has been filed in the Supreme Court questioning the framework's legality. The government clarified that person-to-person transfers and 96% of merchant payments remain free.
Indian Opinion Analysis
The left-leaning and Congress sources frame the UPI MDR as a surrender to US corporate pressure, linking it to tariff threats and zero-MDR history. Government-aligned and neutral-report sources emphasise sustainability: the Parliamentary Standing Committee on Finance, whose members included five Congress MPs, had recommended a tiered MDR. Congress's Rahul Gandhi now opposes what his own party's MPs, including ex-finance minister P Chidambaram, supported. The balanced reading is that the policy fixes a funding gap the government and committee acknowledged, but its political handling gave the opposition a nationalism-vs-surrender frame. The real test will be adoption by October 15 and whether GST passes costs to consumers.
Coverage: 54 sources, 15 pro-government, 6 government-critical, 33 neutral
Sources (54): timesnownews.com (government critical), timesnownews.com (2) (pro government), nationalheraldindia.com (government critical), thehindu.com (government critical), indiatvnews.com (pro government), timesnownews.com (3) (neutral report), timesnownews.com (4) (pro government), hindustantimes.com (neutral report), rediff.com (government critical), timesnownews.com (5) (neutral report), thefederal.com (neutral report), timesofindia.indiatimes.com (pro government), news.abplive.com (neutral report), economictimes.indiatimes.com (pro government), deccanherald.com (neutral report), newindianexpress.com (neutral report), indiatoday.in (pro government), indiatoday.in (2) (pro government), indiatoday.in (3) (pro government), english.mathrubhumi.com (neutral report), aajtak.in (pro government), businesstoday.in (pro government), businesstoday.in (2) (neutral report), timesnownews.com (6) (neutral report), ndtv.com (pro government), rediff.com (2) (pro government), rediff.com (3) (neutral report), rediff.com (4) (neutral report), rediff.com (5) (neutral report), rediff.com (6) (neutral report), livemint.com (neutral report), economictimes.indiatimes.com (2) (neutral report), indiatoday.in (4) (neutral report), indiatoday.in (5) (neutral report), thefederal.com (2) (neutral report), telanganatoday.com (neutral report), indiatoday.in (6) (neutral report), businesstoday.in (3) (pro government), economictimes.indiatimes.com (3) (neutral report), deccanherald.com (2) (neutral report), indiatoday.in (7) (neutral report), thehindu.com (2) (neutral report), timesofindia.indiatimes.com (2) (neutral report), rediff.com (7) (neutral report), bbc.com (neutral report), businesstoday.in (4) (government critical), thefederal.com (3) (neutral report), telanganatoday.com (2) (government critical), timesofindia.indiatimes.com (3) (neutral report), livemint.com (2) (pro government), economictimes.indiatimes.com (4) (neutral report), economictimes.indiatimes.com (5) (neutral report), cnbc.com (neutral report), thehindu.com (3) (pro government)
This brief was synthesised by AI from the 54 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 54 sources.
