# Niti VC defends UPI fee, Congress calls it Modi Tax 2026-09-16T15:21:56+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 4 independent outlets The government has introduced a 0.4% Merchant Discount Rate (MDR) on UPI person-to-merchant payments above Rs 2,000, effective October 15. NITI Aayog vice chairman Ashok Kumar Lahiri defended the move, saying businesses must become self-sustaining and compare the charge to cheque book fees. The government has ruled out a rollback. Congress leader Rahul Gandhi called the levy a 'Modi Tax' and alleged the decision was taken under US pressure. The finance ministry rejected the claim, stating UPI policy is independent. A PIL has been filed in the Supreme Court challenging the lack of public consultation. Petroleum dealers have sought exemption, warning the flat Rs 5 MDR on fuel will erode their margins. Brokerages estimate the MDR framework could create a revenue pool of up to Rs 20,600 crore for payment companies, with Paytm among the likely beneficiaries. The government says over 95% of P2M transactions by volume remain free. The Retailers Association of India warned that small merchants may revert to cash. ## Indian Opinion Analysis Pro-government sources (TOI, Times Now) led with Lahiri's 'bees and honey' defence and the finance ministry's denial of foreign influence, framing MDR as a sustainability measure. The Hindu and NDTV foregrounded dealer and retailer opposition, highlighting risks to UPI adoption and dealer margins. Congress's political attack was covered widely but the opposition's specific allegation of US pressure was not examined in pro-government accounts. The coverage split largely along government versus critic lines, with the financial opportunity for payment firms reported only by Times Now. The Supreme Court hearing on the PIL challenging the MDR will test procedural grounds for the levy. ## Coverage - timesofindia.indiatimes.com (neutral report) Explains MDR rules and exemptions without editorialising - timesofindia.indiatimes.com (neutral report) Explains MDR rules and exemptions without editorialising - thehindu.com (government critical) Focuses on petroleum dealer opposition and threat to UPI adoption - timesnownews.com (neutral report) Reports brokerage estimates of revenue opportunity without commentary - timesnownews.com (neutral report) Reports brokerage estimates of revenue opportunity without commentary - timesnownews.com (neutral report) Reports brokerage estimates of revenue opportunity without commentary - ndtv.com (government critical) Highlights retailer warning of cash economy return Tags: merchant discount rate, NITI Aayog, NPCI, Rahul Gandhi, Supreme Court, UPI Canonical: https://indianopinion.org/upi-mdr-row-govt-defends-charge-opposition-calls-it-tax/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/upi-mdr-row-govt-defends-charge-opposition-calls-it-tax/#story-in-brief