No foreign influence in UPI fee: Govt clarifies amid Opposition outcry over ‘US pressure’, tell me about this news in (https://www.hindustantimes.com/india-news/no-foreign-influence-in-upi-fee-govt-clarifies-amid-opposition-outcry-over-us-pressure-101789585577427.html)

Here is a summary of the news reported by Hindustan Times:

The Union Finance Ministry clarified that there is no foreign influence or pressure behind its decision to introduce a 0.4% Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions above ₹2,000.

Key Details of the Decision

• Applicability: The 0.4% MDR applies strictly to person-to-merchant (P2M) transactions exceeding ₹2,000, capped at ₹300 for transactions of ₹75,000 and above. It takes effect on October 15, 2026.

• No Cost to Consumers: Person-to-person (P2P) transfers, regular payments under ₹2,000, and auto-debit mandates remain completely free. The government emphasized that merchants are legally prohibited from passing this fee onto consumers, and doing so constitutes a criminal offense.

• Small Merchants Exempt: Street vendors and neighbourhood businesses receiving up to ₹1 lakh per month under the person-to-person-merchant (P2PM) category will face zero MDR. The government estimates that only about 4% of total merchant transactions will be affected.

• Government’s Justification: The ministry stated that India’s digital payment policies are made independently. The fee on higher-value merchant transactions is intended to make the digital payment infrastructure financially self-sustaining, improve cybersecurity, and support small merchants in smaller towns.

The Political Outcry

• Opposition Allegations: Leaders from the Opposition, including Rahul Gandhi, alleged that the government introduced the charge due to US pressure and described it as bowing down to foreign interests and levying a “new Modi tax” on citizens.

• Official Stance: The Ministry of Finance dismissed these allegations as false, reaffirming that UPI was built and continues to operate entirely on India’s own terms, with senior officials ruling out any rollback of the policy.