The Opposition on Tuesday slammed the BJP government over its decision to introduce a 0.4 per cent Merchant Discount Rate ( MDR ) on UPI payments above ₹ 2,000 made to merchants.
The Congress called it the “Modi tax” and alleged that a “compromised” prime minister had “surrendered” to US pressure.
After nearly six years of allowing merchants to use UPI without a transaction fee, the government announced a 0.4 per cent MDR charge on payments above ₹ 2,000, effective October 15.
These transactions will not be affected by the new charge. The government said small-value transactions of up to ₹ 2,000 make up more than 95 per cent of total P2M volume.
Leader of Opposition (LoP) in the Lok Sabha and Congress MP Rahul Gandhi alleged that the Modi government has quietly cleared the way for UPI charges, while Congress chief Mallikarjun Kharge said the Modi government’s “loot” has now reached UPI. “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 said in a post in Hindi on X.
Opposition targets BJP over UPI move
Pawan Khera, Congress’ media and publicity department head and Rajya Sabha MP, said the 0.4 per cent MDR on UPI payments above ₹ 2,000 should be termed the “Modi Tax”. “He popularised UPI, wanted all the credit for building a ‘cashless economy’ — and now he is taxing people for using it,” Khera said on X. Indian Union Muslim League (IUML) Rajya Sabha MP Haris Beeran told news agency PTI that the government has “betrayed the general public”.
