"PM Modi once again yielding to US pressure over reported UPI charges," Rahul Gandhi alleges.

Leader of Opposition in the Lok Sabha Rahul Gandhi has criticised the BJP-led government over reports that a fee mechanism could be introduced for certain UPI transactions, accusing the Centre of giving in to pressure from US-based payment companies. In a post on X, Gandhi claimed that allowing a Merchant Discount Rate (MDR) on UPI payments above Rs 2,000 could eventually increase the financial burden on consumers, even if customers are not directly charged for making digital payments.

Gandhi said that transactions exceeding Rs 2,000 may account for only a small share of UPI transactions by volume but represent a much larger portion of the overall transaction value. He argued that any charges imposed on merchants could eventually be reflected in the prices of goods and services, effectively passing the cost on to consumers.

The Congress leader also alleged that American payment companies have previously opposed India's zero-MDR framework for UPI. Referring to the broader issue of India's economic engagement with the US, Gandhi accused Prime Minister Narendra Modi of once again giving in to American pressure.

His remarks came after the Finance Ministry issued a notification clarifying that UPI transactions of up to Rs 2,000 would not be subject to direct or indirect charges from banks or system providers. The provision effectively keeps the vast majority of UPI transactions by volume within the zero-charge category. Congress president Mallikarjun Kharge also criticised the reported change. He argued that the government should focus on providing relief to people facing rising living costs rather than introducing new costs associated with digital payments.

Kharge alleged that changing the policy from a blanket assurance of no UPI charges to a threshold-based exemption could increase the financial pressure on ordinary citizens. He also linked the issue to wider concerns over inflation and household savings, accusing the government of looking for new ways to raise revenue from the public.

Disclaimer: This image is taken from ANI.