Congress MP Pawan Khera attacked the BJP over the new 0.4% MDR on UPI transactions above Rs 2,000, alleging the government is destroying its own cashless economy initiative out of fear of the US and looting people through the new policy.
Congress Slams BJP’s UPI MDR Policy
Congress MP Pawan Khera on Friday targeted the BJP-led Union government over the 0.4 per cent Merchant Discount Rate on UPI transactions above Rs 2,000, alleging that the ruling party is dismantling its own initiative of a cashless economy due to “fear of the United States.”
“Out of fear of America, you are completely abandoning your own initiative in your own country. You even stole the credit from Nandan Nilekani and Dr. Manmohan Singh, claiming you were bringing a cashless economy to this country. And now, you’re the one working to destroy that cashless economy,” said Khera.
Khera Claims Burden Will Fall on Consumers
Addressing a press conference in Indore, Khera claimed that consumers under the new NPCI framework will bear the cost of the 0.4 per cent MDR tax on UPI, asserting that the government cannot expect traders to absorb all the losses themselves, as they have to run their business. He further claimed that the BJP-led government is looting the people through this MDR policy. “Forget about what sources said. For one, you pay GST on a product. Then, you pay tax on the platform you use to make the payment. And you’ll pay GST on that tax too. So, you’re being looted three times over. It’s pretty obvious. I think traders are the backbone of any economy, especially this country. You can’t expect them to just absorb all the losses themselves instead of passing them on to customers. Not everyone is a saint like you, just walking around with a bag. They’re traders, after all; they have to stay here and run their shops. So ultimately, this is definitely going to be passed on to the customers,” Khera said.
Traders Protest Against New UPI Charges
Khera’s remarks came after traders’ organisations in Dehradun opposed the 0.4 per cent Merchant Discount Rate (MDR) on UPI payments above Rs 2,000, saying the move would impose an additional burden on businesses, and warned of agitation if implemented.
The Doon Udyog Vyapar Mandal and other local traders’ organisations said traders are already paying income tax and GST and would not be willing to bear an additional cost on UPI transactions.
Details of the New UPI MDR Framework
The protests came after the National Payments Corporation of India (NPCI) on September 15 introduced a new Merchant Discount Rate (MDR) framework, under which UPI merchant transactions above Rs 2,000 will attract an MDR of 0.4 per cent, while consumers will continue to transact free of cost using UPI.
The revised UPI MDR framework will come into effect from October 15, 2026, and will apply only to select merchant transactions. Under the new framework, an MDR of 0.4 per cent will apply to Person-to-Merchant (P2M) UPI transactions above Rs 2,000, with the MDR capped at Rs 300 per transaction. (ANI)
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