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‘Surrendering to American pressure’: Rahul Gandhi targets PM Modi govt over UPI charges

‘Surrendering to American pressure’: Rahul Gandhi targets PM Modi govt over UPI charges

Lok Sabha LoP Rahul Gandhi. Photograph: (ANI)

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Rahul Gandhi has accused the Modi government of giving in to US pressure over UPI charges, arguing that merchant fees on transactions above ₹2,000 could ultimately increase costs for consumers.

Lok Sabha Leader of Opposition Rahul Gandhi on Tuesday (Sept 15) accused the BJP-led central government of giving in to pressure from American payment companies over the reported move to allow charges on some UPI transactions.

Gandhi said the government’s claim that customers would not be charged directly does not address the impact on consumers. He argued that allowing a Merchant Discount Rate (MDR) on merchant transactions above ₹2,000 could eventually push up prices for buyers.

Rahul Gandhi targets Centre over UPI policy

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In a post on X, Gandhi alleged that the government had opened the way for fees to be imposed on UPI payments above the ₹2,000 threshold.

"The Modi government has quietly opened the door to imposing fees on UPI. Now, MDR can be levied on merchant UPI transactions above Rs 2,000. Even if these transactions account for just 5% of the volume, they make up nearly 65% of UPI's total transaction value. The government says no fees will be charged to customers. But where will the fees imposed on shopkeepers ultimately come from? Added to prices, straight out of the customer's pocket," he said.

Gandhi also claimed that American payment companies have previously opposed India’s zero MDR policy. He alleged that the government was now moving towards changing the policy in the same direction.

"Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure," he said.

Finance Ministry notification

Gandhi's remarks came after the Finance Ministry issued a notification stating that UPI transactions up to ₹2,000 cannot attract any direct or indirect charge from banks or system providers.

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The provision effectively keeps around 96 per cent of UPI transactions by volume within the zero-charge threshold, according to the notification.

Congress president Mallikarjun Kharge also criticised the reported move earlier on Tuesday. He accused the government of looking for new ways to increase the financial burden on people instead of providing relief amid inflation.

"The Modi government's loot has now reached UPI. 'No fees on UPI' has been changed to 'no fees on UPI transactions up to Rs 2,000'. Sky-high inflation has already emptied the common man's pocket. Wholesale inflation is near 10%, and the BJP government has planned to impose a 'Digital Payments Tax' on the public, aiming to destroy whatever little savings they have left," Kharge said.

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Ajaypal Choudhary

Driven by a deep interest in international politics and geo-economics, Ajaypal Choudhary writes on and analyses a wide range of subjects from geopolitics and the global economy to ...Read More