‘Quietly opened the door to UPI fees’: Rahul Gandhi slams Modi govt over UPI transaction charges

Congress MP Rahul Gandhi has accused the Modi government of opening the door to UPI charges, alleging it could ultimately burden consumers. The Centre, however, said charges are needed to ensure financial sustainability, boost competition

Congress MP and Leader of Opposition (LoP), Lok Sabha, Rahul Gandhi, on Tuesday launched a scathing attack on the Centre, accusing the Narendra Modi-led government of having "quietly opened the door to imposing fees on UPI."

Rahul Gandhi slams PM Modi, accuses him of being 'compromised'

In a rather lengthy post on X, Gandhi wrote, "Now, MDR can be levied on merchant UPI transactions above ₹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 further accused PM Modi of being "compromised", and wrote, "Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure."

According to the LoP, US payment companies have been opposing India's zero-MDR policy. He added that the Modi government has now opened the path to changing the policy in a direction that benefits Americans.

However, Rahul Gandhi was not the only Congress leader to launch an attack on PM Modi. Party president Mallikarjun Kharge also claimed that the Modi government's "loot" has now reached UPI.

Why is Congress attacking PM Modi?

Gandhi's post comes after the Centre notified changes concerning UPI transactions. According to PTI, the Central government has directed banks and payment system providers not to impose additional charges on UPI transactions of up to ₹2,000 or on payments made via RuPay debit cards. However, the government did not specify whether these changes would be applicable to transactions above ₹2,000 or whether such charges would be paid by merchants. Currently, there are no charges on UPI transactions, irrespective of the amount.

According to a gazette notification issued on Monday, banks and system providers will not be allowed to levy any direct or indirect charges on individuals making or receiving payments through RuPay debit cards or UPI for transactions of up to ₹2,000.

The notification comes after an amendment to Section 10A of the Payment and Settlement Systems Act, 2007, which creates a legal framework allowing Merchant Discount Rate (MDR) to be charged on UPI transactions and other electronic payment methods notified under the law.

Centre clarifies on levying charges on UPI transactions

According to reports, the Central government clarified the rationale for levying charges on UPI transactions. In a statement, the government noted that the rapid growth in transaction volumes has increased the need for continuous investment in cybersecurity, fraud prevention measures and digital infrastructure.

It further said the charges were necessary to ensure the sector's financial sustainability and support market expansion. According to the government, this would require greater competition by encouraging more companies to scale up their operations and adopt sustainable revenue models.

About the Author

Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.

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HomeNewsIndia'Modi govt quietly opened the door to imposing fees on UPI': Rahul as he slams PM Modi over UPI transaction charges