Congress MP and Leader of Opposition in Lok Sabha Rahul Gandhi has targeted Prime Minister Narendra Modi over the new charge framework of UPI. Rahul Gandhi demanded the government to withdraw the new rule and called it UPI tax. He alleged that the government was working under pressure from America and the burden of the decision may fall on Indians in future. However, the central government has clarified that Merchant Discount Rate (MDR) is not a tax and it will not be taken directly from customers.
In his video, Rahul Gandhi took a jibe at Prime Minister Modi by giving the example of former Prime Minister Indira Gandhi. After this, he targeted Modi and said that he is neither left nor right, but has decided to bow straight before Donald Trump.
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Rahul Gandhi's full statement
Rahul Gandhi shared a video post on social media and urged Prime Minister Modi to 'stop bowing down' before America, show courage, stand firm and withdraw the UPI tax. In the video, he further said, 'Once Indira Gandhi ji was asked whether she inclined towards left or right. His answer was that I neither lean towards the left nor towards the right, I stand straight. Modi ji's concept is completely different. He is neither on the left nor on the right, he has decided to bow before Donald Trump.
MDR on merchant payments of more than Rs 2,000
Under the new UPI framework, 0.4% MDR will be applied on select merchant UPI transactions above Rs 2,000. The maximum limit of MDR has been kept at Rs 300 per transaction for transactions of Rs 75 thousand or more. This arrangement will come into effect from 15 October 2026. At the same time, no MDR will be levied on person to person i.e. P2P UPI payment.
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According to the government, there will be zero MDR system for merchant payments up to Rs 2,000 and small traders. Due to this, about 96% of merchant UPI transactions will not be affected by this change. The government has also said that the MDR will be distributed among the banks and other stakeholders associated with the payment system.