‘Silently opened door to UPI charges’: Rahul Gandhi slams Modi government over UPI transaction charges | Today’s news
Congress MP and Leader of the Opposition (LoP), Lok Sabha, Rahul Gandhi on Tuesday launched a scathing attack on the Centre, accusing the Narendra Modi-led government of “quietly opening the door to UPI charges”.
Rahul Gandhi slams PM Modi, accuses him of ‘compromise’
In a rather lengthy post on X, Gandhi wrote, “Now MDR can be collected from the above merchant UPI transactions. ₹2000. Although these transactions account for just 5% of the volume, they account for nearly 65% of the total UPI transaction value. The government says customers will not be charged. But where do the fees imposed on merchants ultimately come from? Added to the prices, directly from the customer’s pocket.”
He further accused PM Modi of being “compromised”: “Just like the US trade deal, compromised PM Modi is once again bowing to US pressure.”
According to the LoP, US payment companies oppose India’s zero MDR policy. He added that the Modi government has now opened the way for a policy change in a direction that will benefit Americans.
However, Rahul Gandhi was not the only Congress leader to attack PM Modi. Party president Mallikarjun Kharge claimed that the “spoils” of the Modi government had now reached UPI.
Why is Congress attacking PM Modi?
Gandhi’s post comes after the Center announced changes regarding UPI transactions.
According to PTI, the central government has directed banks and payment system providers not to charge additional charges for UPI transactions up to ₹2,000 or on RuPay debit card payments. However, the government did not specify whether these changes will apply to the aforementioned transactions ₹2,000 or whether merchants would pay such fees. Currently, there are no charges for UPI transactions, irrespective of the amount.
According to a gazette notification issued on Monday, banks and system providers will not be allowed to charge any direct or indirect charges to individuals making or receiving payments through RuPay or UPI debit cards for transactions up to ₹2000.
The notification comes after the amendment of Section 10A of the Payment and Settlement Systems Act, 2007, which creates a legal framework to enable charging of Merchant Discount Rate (MDR) on UPI transactions and other electronic payment methods notified under the Act.
Center clarifies collection of charges for UPI transactions
According to reports, the central government has clarified the reasons for levying charges on UPI transactions. In a statement, the government noted that rapid growth in transaction volume has increased the need for continued investment in cyber security, fraud prevention measures and digital infrastructure.
She further stated that the fees are necessary to ensure the financial sustainability of the sector and support market expansion. According to the government, this would require more competition by encouraging more companies to expand their operations and adopt sustainable revenue models.
