Modi government’s loot has reached UPI, says Congress; BJP hits back, tell me about this news in (https://www.hindustantimes.com/india-news/upi-transaction-fees-new-rules-charges-congress-bjp-101789523471748.html)
16-09-2026
The report covers a sharp political confrontation between the Indian National Congress and the Bharatiya Janata Party (BJP) following a central government notification regarding transaction fees on Unified Payments Interface (UPI) payments. Hindustan TimesKey Details of the New UPI Rules
- Effective Date: October 15. Hindustan Times
- Applicable Scope: A 0.4% Merchant Discount Rate (MDR) is introduced on person-to-merchant (P2M) transactions above ₹2,000, capped at ₹300 for payments of ₹75,000 and above. Hindustan Times
- Essential Sectors: Thin-margin sectors such as railways, fuel, telecom, insurance, and agricultural inputs will incur a flat MDR of ₹5 per transaction exceeding ₹2,000. Hindustan Times
- What Remains Free:
- Person-to-person (P2P) transfers (such as sending money to family or friends) remain completely free regardless of the amount. Hindustan Times
- All merchant transactions up to ₹2,000 remain entirely charge-free. Rediff
- Transactions made via RuPay debit cards also remain exempt from charges. Rediff
- “Loot Reached UPI”: Congress President Mallikarjun Kharge attacked the government, claiming its “loot” has now extended to digital payments and criticizing the administration for altering the promise from “no fees on UPI” to “no fees on UPI up to ₹2,000”. Hindustan Times
- Policy Reversal and “Modi Tax”: Leader of Opposition Rahul Gandhi stated the move breaches the government’s commitment to an open and free UPI platform, labeling the charge a “Modi tax” and alleging that the government yielded to external pressure. Hindustan Times
- Lack of Transparency: Congress leaders noted that government spokespersons and the Finance Minister had earlier told Parliament that no framework on MDR had been finalized, only to introduce these charges via notification shortly after. MillenniumPost
- Accusations of “Fake News”: The BJP dismissed Congress’s claims, accusing the opposition of running a “shop of lies” (jhooth ki dukaan) and creating unwarranted public panic to undermine the Digital India initiative. Rediff
- Zero Cost to Everyday Consumers: Party representatives reiterated that MDR charges apply strictly to merchants above the specified transaction thresholds, not to retail end-users or consumers. MillenniumPost
- Protection for Small Businesses: The BJP highlighted that over 95% of merchant payments are for values of ₹2,000 or below, meaning the vast majority of everyday transactions and small vendors will face zero fees. Rediff