RBI Governor Sanjay Malhotra said the new Merchant Discount Rate on select UPI transactions is unlikely to hurt digital payment volumes. From October 15, a 0.4 per cent MDR will apply to specified person-to-merchant transactions above Rs 2,000
The Supreme Court refused to stay the proposed MDR on specified UPI merchant transactions above Rs 2,000 from October 15. It sought responses from the Centre, RBI and NPCI within four weeks on a petition challenging the levy
The All India Mobile Retailers Association has urged the Finance Ministry to exempt small and medium mobile retailers from any proposed UPI MDR or transaction charges. AIMRA said a 0.4 per cent fee could further squeeze already thin margins
BSP chief Mayawati criticised the Centre's new 0.4 per cent MDR on specified UPI merchant transactions above Rs 2,000, calling it a "capitalist profiteering attitude". The government has said customers and person-to-person UPI transactions will remain free
BRS working president K T Rama Rao urged Union Finance Minister Nirmala Sitharaman not to impose any tax on UPI transactions, cautioning that higher digital payment costs could affect young entrepreneurs, small businesses and financial inclusion
Opposition parties have criticised the new UPI merchant discount rate framework, alleging it was introduced under US pressure. Congress, RJD, TMC and CPI leaders questioned the move, while the government maintained that MDR charges would not be imposed on consumers
The Finance Ministry rejected claims that changes in UPI merchant discount rates were driven by foreign influence, saying India's digital payment policies are independently decided. It said UPI remains free for customers, while certain high-value merchant transactions attract charges
Zerodha CEO Nithin Kamath backed the introduction of MDR on P2M UPI payments, saying it could increase competition in the ecosystem. However, he flagged concerns for brokers, who could incur charges on repeated client fund transfers without generating corresponding revenue.
The BJP defended the new 0.4 per cent MDR on select UPI merchant transactions above Rs 2,000, while NCP(SP) criticised the move. The reactions followed NPCI’s announcement of the framework, which keeps person-to-person payments free.
The Congress attacked the Modi government over a notification restricting UPI and RuPay charges on transactions up to Rs 2,000. Rahul Gandhi and Mallikarjun Kharge alleged the move could pave the way for Merchant Discount Rate charges on larger transactions
Finance Minister Nirmala Sitharaman called Indian communists “total cowards” during a Rajya Sabha debate, accusing CPI(M) MP John Brittas of spreading confusion over UPI charges. She defended the Taxation Amendment Bill and reiterated that consumers will not be charged for UPI payments
The Finance Ministry has clarified that UPI payments will remain free for consumers, with any future merchant discount rate (MDR) applicable only to select high-value merchant transactions at nominal rates.
