"Quietly Opened The Door To Imposing Fees On UPI": Rahul Gandhi Attacks Centre

The Narendra Modi-led government's latest move on UPI has invited sharp criticism from Rahul Gandhi, who also accused the Prime Minister of being "compromised". 

"The Modi government has quietly opened the door to imposing fees on UPI. Now, MDR (Merchant Discount Rate) 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," Gandhi, the Leader of the Opposition in the Lok Sabha, posted on X. 

The Congress' attack came after the government directed banks and payment system providers not to levy charges on Unified Payments Interface (UPI) transactions of up to Rs 2,000 or on payments made through RuPay debit cards.

Read | UPI Payments Up To Rs 2,000 Are Free. Here's What Happens Beyond That

However, the government has not specified whether charges would be applicable to transactions above Rs 2,000, to be paid by merchants. So far, there has been no charge on UPI transactions, irrespective of the amount.

"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," Gandhi said.

मोदी सरकार ने चुपचाप UPI पर फ़ीस लगाने का रास्ता खोल दिया है।

अब ₹2,000 से ऊपर के merchant UPI लेन-देन पर MDR लगाया जा सकता है। इन ट्रांजैक्शंस की संख्या भले ही सिर्फ़ 5% हो, लेकिन UPI के कुल transaction value का करीब 65% इन्हीं में है।

सरकार कहती है कि ग्राहक से कोई फ़ीस नहीं…

— Rahul Gandhi (@RahulGandhi) September 15, 2026

American payment companies have long opposed India's zero-MDR policy, Gandhi said. Now, the Modi government has opened the path to changing the policy in exactly that direction, Gandhi claimed.

The September 14 notification follows an amendment to section 10 A of the Payment and Settlement Systems Act, 2007, which provides an enabling framework for imposing a Merchant Discount Rate (MDR) on payments through UPI and other notified electronic payment modes.

"American payment companies have long opposed India's zero-MDR policy. Now, the Modi government has opened the path to changing the policy in exactly that direction. Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure," Gandhi claimed.

Congress chief Mallikarjun Kharge alleged that instead of providing relief to the inflation-weary public, the Modi government is searching for a new way every day to rob their pockets.

"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," Kahrge said in a post on X.

"Speaking of MDR, doesn't the government know that this additional burden on merchants will ultimately be recovered from the common consumer's pocket through price hikes?" Kharge said.

The amendment Bill was passed by Parliament during the Monsoon Session, which concluded on August 13. Following the passage of the Bill, the government had said the UPI and Services Steering Committee, headed by the National Payments Corporation of India (NPCI), would decide on the MDR rates.

Explaining the rationale for imposing charges, the government, in a statement, said, with exponential transaction volumes, the system requires significant and continuous upgrades in cybersecurity, fraud prevention, and infrastructure.

Charges were required for market expansion and self sustainability, it had said. It is necessary to increase competition by encouraging more companies to expand their operations, which requires a self-sustaining revenue model, it had said.

Reliance on subsidies alone is not viable for the next wave of growth, it had said, adding that a balanced framework is required to ensure that UPI remains robust, inclusive, and future-ready.

UPI is operated by the National Payments Corporation of India (NPCI), an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association.