Digital payments platform UPI has entered a political debate after Congress leader Rahul Gandhi criticised the government. He alleged that the government quietly opened the way for UPI charges. Rahul claimed payments above ₹2,000 for merchants could face fees. He said customers may eventually bear this burden through higher prices.
Additionally, Rahul linked the possible change with alleged American pressure. He accused Prime Minister Narendra Modi’s government of changing policy under foreign influence.
In a social media post, Rahul said transactions above ₹2,000 form only 5% of total transactions. However, he claimed they contribute nearly 65% of total UPI transaction value.
Congress Leaders Question Possible Customer Impact
Rahul Gandhi said the government claims customers will not pay any fee. However, he questioned who would bear merchant charges. According to Rahul, shopkeepers may add these costs to product prices. He also said American payment companies opposed India’s zero-MDR policy. Furthermore, Rahul alleged that the government moved towards policy changes due to US pressure. He compared this issue with concerns around trade decisions.
Congress president Mallikarjun Kharge also criticised the possible charges. He recalled the government’s earlier statements about promoting digital payments after demonetisation.
Kharge said the finance minister had recently stated that UPI would not face taxes or charges. He questioned reports suggesting ₹25 charges on ₹5,000 transactions.
What Is The UPI Charge Debate About?
UPI changed how people make payments across India. Currently, UPI payments up to ₹2,000 cannot attract charges under existing rules. However, a new arrangement may allow charges on merchant payments above ₹2,000. The notification has already been issued.
The key question remains about who will pay these charges. The system includes two payment types.
First, person-to-person transfers remain free. These include payments between friends or family members.
Second, merchant payments involve businesses receiving money through UPI. Charges may apply when transaction values cross ₹2,000.
How Much Fee Could Apply?
The final decision on charges has not arrived yet. Initial discussions between NPCI and banks suggested a possible 0.4% fee. For example, a ₹10,000 merchant payment could attract a ₹40 charge. However, this remains only a possible rate.
The actual fee amount has not received final confirmation.
Government Clarifies Its Position On UPI Fees
The central government said regular UPI users will not pay transaction charges. Payments between individuals will also remain free. Moreover, payments up to ₹2,000 will continue without fees. The government stated that any future merchant payment system will not directly burden users.
According to the government, such measures aim to maintain a sustainable digital payment system.
