Jammu and Kashmir chief minister Omar Abdullah on Wednesday appeared to back the decision to impose a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding ₹ 2,000 but also urged the government to ensure they are not passed on to customers.
In a media interaction in Srinagar, Abdullah said that as per his understanding, operating the UPI system in India costs a lot. “Also, the truth is that we often fail to properly appreciate things we get for free,” he added.
However, the National Conference leader also urged the government to ensure that the cost of this charge doesn’t fall in consumers. A day later, Abdullah reiterated support for the merchant fee, stating that businesses and not people will be charged with it. “The order that has now been issued clearly states that this charge cannot be transferred to the customer. The J&K CM’s support for the UPI charge comes at a time when the government is under fire from the Congress over it. “If you and I are sending money to each other, there will be no charge on that either.
For transactions above ₹ 2,000, there is a charge, but a limit has also been set,” he said. Because most of the business transactions are below ₹ 2,000, there is no merchant charge on transactions below ₹ 2,000,. Secondly, if you and I are sending money to each other, there will be no charge on that either,” Abdullah said on Thursday, as quoted by news agency PTI . Congress leader Rahul Gandhi and several other Opposition leaders had said that the government succumbed to US pressure in making the decision, a claim denied by the finance ministry on Wednesday. In line with the government clarification on the UPI charge, Abdullah also said on Thursday that the fee won’t apply to regular consumers.
