New Delhi: The Centre has rejected opposition allegations that the introduction of a Merchant Discount Rate on certain UPI transactions was influenced by foreign pressure or intended to benefit American card companies.
The Finance Ministry said India’s UPI policy decisions are made “independently” and stressed that UPI will continue to remain free for consumers. The clarification came after Congress alleged that the move could address concerns linked to UPI and RuPay affecting companies such as Visa and Mastercard.
🔰 UPI Remains Free for Consumers
UPI continues to be free for customers. Sending money to friends, paying at shops, or scanning a QR code — all remain without charges.
Key Facts:
✅ No charges on P2P: Person-to-Person transfers are always free, regardless of amount.
✅ Small… pic.twitter.com/PyQ7hotNMN— Ministry of Finance (@FinMinIndia) September 16, 2026
Under the reported new framework, UPI transactions above ₹2,000 will attract an MDR of 0.4% from October 15. According to NPCI, the charge will be paid by merchants rather than customers.
The new UPI framework has drawn criticism from opposition leaders, including Lok Sabha Leader of Opposition Rahul Gandhi and other opposition leaders, who have alleged that the move is being made under foreign influence and pressure from the United States.
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
Rahul Gandhi has criticised the government over the proposed MDR on UPI merchant transactions, arguing that the move could ultimately put an additional burden on consumers. These remain opposition allegations, while the government has rejected claims of foreign influence.
Rahul Gandhi has also demanded that Prime Minister Narendra Modi immediately roll back the new UPI payment rule.
Rahul Gandhi Calls On PM Modi To Withdraw New UPI Payment Rules, Raises Concerns Over Merchant Charges #RahulGandhi #UPI #DigitalPayments #PMModi @RahulGandhi pic.twitter.com/r1ITx2Ljyo
— NewsMobile (@NewsMobileIndia) September 16, 2026
The Centre, however, maintained that the policy is aimed at developing a sustainable and affordable digital payments ecosystem.
