New Delhi: Rahul Gandhi Tuesday hit out at the central government over a gazette notification directing banks and payment system providers not to levy charges on UPI transactions of up to Rs 2,000 or on payments made through RuPay debit cards.
Gandhi, Leader of the Opposition in the Lok Sabha, said the move “has quietly opened the door to imposing fees” on higher-value merchant transactions.
Congress president Mallikarjun Kharge also took a swipe at the Centre over the notification, saying the protocol has been changed from “no fees on UPI” 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,” he wrote on X.
अब मोदी सरकार की लूट UPI तक पहुँच गई है। “No fees on UPI” को बदलकर अब “₹2,000 तक के UPI transactions पर no fees” कर दिया गया है।
गगनचुंबी महँगाई से आम आदमी की जेब पहले ही खाली है। थोक महँगाई 10% के क़रीब है और भाजपा सरकार ने जनता पर “Digital Payments Tax” लगाकर उनकी बची-कुची,… pic.twitter.com/Fq63eLLFVp
— Mallikarjun Kharge (@kharge) September 15, 2026
The notification, dated 14 September, does not specify whether charges can be levied on transactions exceeding Rs 2,000, to be paid by merchants. It does not itself impose a Merchant Discount Rate (MDR) on UPI transactions above that amount. So far, UPI transactions have remained free of charges irrespective of their value.
“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,” Gandhi said in a post on X.
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
Notably, Parliament passed an amendment to the Payment and Settlement Systems Act, 2007, during the Monsoon Session to create a framework for imposing MDR on payments through UPI and other notified electronic payment modes. After the Bill was passed, the government said the UPI and Services Steering Committee, headed by the National Payments Corporation of India (NPCI), would decide the MDR rates.
Finance Minister Nirmala Sitharaman had clarified that UPI payments would remain free for regular users and that any MDR would be paid by merchants, not end users.
Gandhi questioned this assertion, and asked, “But where will the fees imposed on shopkeepers ultimately come from? Added to prices, straight out of the customer’s pocket.”
He also accused the Modi government of “once again surrendering to American pressure,” saying US payments 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,” he said.
Comparing it with the ongoing India-US trade negotiations, Gandhi said, “Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure.”
Kharge also dubbed the Centre’s action as “Modi government’s biggest flip-flop” and noted that when questions were raised about the demonetisation process, the government then had argued that it was carried out to “promote digital payments and a cashless economy”.
“Instead of providing relief to the inflation-weary public, the Modi government is searching for a new way every day to rob their pockets!!” he added.
UPI currently operates under a zero-MDR model, under which merchants are not charged MDR and banks and payment service providers receive no such fees for UPI transactions. During discussions on the proposed MDR framework, the government had said the exponential growth in transaction volumes required significant and continuous investment in cybersecurity, fraud prevention and infrastructure upgrades.
(Edited by Chingkheinganbi Mayengbam)
Also Read: Can UPI transactions be charged? What Centre’s new taxation bill means for users & merchants
Does he know how much money or resources is needed for further research and development? He knows 0, only complains about wrong issues and makes our country look bad. I wish for an early retirement, open to voting congress if the sister steps up. Raga is not acceptable. Absolute joker.