Centre Debunks 'External Pressure' Myth over ‘Foreign Influence’: ‘Goal to Build…'
The ministry said UPI decisions are independent and that 96% of person-to-merchant transactions will remain unaffected.
- The Ministry of Finance rejected allegations that foreign pressure influenced the new 0.4% UPI Merchant Discount Rate, asserting decisions regarding the fee for transactions exceeding Rs 2,000 are made independently.
- A 0.4% MDR will apply to specified person-to-merchant UPI transactions exceeding Rs 2,000 from October 15, designed to fund essential infrastructure, cybersecurity, and fraud prevention within the rapidly expanding payments ecosystem.
- Opposition leaders allege the policy bows to "American imperialism," with Congress's Jairam Ramesh labeling the move a "digital somersault" and a "Modi tax" on common citizens.
- To address concerns, the Ministry clarified that everyday person-to-person transfers remain free, with government data indicating around 96% of person-to-merchant transactions will remain unaffected.
- Critics argue the move could increase commodity prices and create space for international card networks to compete with UPI, while the government maintains the fee is necessary for sustainability.
22 Articles
22 Articles
'Roll back UPI tax': Rahul Gandhi slams Centre over new charge, claims PM Modi has 'surrendered' before Trump
Accusing Prime Minister Narendra Modi of “surrendering” before Donald Trump, Rahul alleged that the revised UPI policy would burden Indians and benefit the United States.
The central government has dismissed allegations of foreign pressure regarding its decision to impose a merchant discount rate on UPI. Under the new system, starting October 15th, certain merchant transactions above ₹2,000 will attract a 0.4% MDR, which will be paid by merchants. Payments up to ₹2,000, P2P transfers, and UPI QR payments for small businesses earning up to ₹1 lakh per month will remain free.
Why Opposition Calls New UPI MDR A Surrender To US Pressure
Opposition parties, including Congress, TMC, and RJD, have strongly criticised the government's decision to impose a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000 made to merchants. They allege the move is a result of "American imperialism" and will lead to increased commodity prices, while the government maintains the charge is on merchants and not consumers, with person-to-person transactions remaining free.
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