17 September,2026 08:42 AM IST | New Delhi | Agencies
Congress has launched ‘PayPM’ protest using Paytm-style QR code. PIC/X/@kharge
Slamming the imposition of a 0.4 per cent fee on UPI payments above Rs 2000 to merchants, the Congress on Tuesday dubbed it as "Modi tax" and alleged that a "compromised" PM had "surrendered" to US pressure.
The Congress accused the government of giving into a US demand to get rid of zero Merchant Discount Rate (MDR) and charge for UPI, and took a swipe at the PM, saying he has "redefined NOTA - Narendra's Ongoing Trump Appeasement."
Leader of the Opposition in Lok Sabha Rahul Gandhi. FILE PIC
Ending nearly six years of a fully free Unified Payments Interface (UPI) network for merchants, the government on Tuesday introduced a 0.4 per cent transaction fee on payments above Rs 2000, capped at Rs 300 for payments of Rs 75,000 and above, from October 15, while explicitly ring-fencing everyday person-to-person transfers from any charge.
Leader of Opposition in the Lok Sabha Rahul Gandhi alleged that the Modi government has quietly paved the way for imposing fees on UPI, while Congress chief Mallikarjun Kharge said the Modi government's "loot" has now reached UPI. Kharge, in a post on X, alleged that sky-high inflation has already emptied the common person's pocket.
There is no question of a re-think on the issue of imposition of 0.4 per cent MDR charges on UPI transactions, government sources said on Wednesday. A top official, when asked whether the Centre was considering to roll back the proposed MDR charges, said a decision has been taken and there was no question of reversing it.
Merchants would have to pay 18 per cent GST on the Merchant Discount Rate (MDR) charges for UPI payments above Rs 2000, but can claim input tax credit (ITC), thereby easing the overall tax burden, tax experts said on Wednesday. The share of P2M UPI transactions above R2000 has steadily increased from 15.1 per cent in FY23 to 20.1 per cent in the June quarter of FY27, reflecting a sustained shift towards higher-value merchant payments on UPI.
Rs 300
Transaction fee capped for payments of Rs 75K and above
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