New Delhi. Union Finance Minister Nirmala Sitharaman, responding to senior Congress leader Jairam Ramesh’s criticism of the Taxation and Other Laws (Amendment) Bill, 2026, said he should refrain from “spreading rumors” regarding the proposed changes related to UPI transactions.
She clarified that the Merchant Discount Rate (MDR) applies only to merchants, not to end-users or customers. Sitharaman said the proposed system will help banks and fintech companies invest more in digital payments infrastructure, innovation, and security, ultimately benefiting all UPI users.
“MDR is not applicable to customers”
The Finance Minister said Jairam Ramesh should not make statements without understanding the facts. She said, “Before spreading rumors, please consider that the Merchant Discount Rate (MDR) applies only to merchants, not to end-users or customers. This will help banks and fintech companies invest more in infrastructure, innovation, and security.”
Also argued for discussion in Parliament
Accusing the Congress of raising the issue outside Parliament, Sitharaman said that if the opposition had participated constructively in the Lok Sabha and Rajya Sabha on the bill, all these issues could have been discussed in detail inside the House. She said, “If your party had participated constructively in Parliament when the bill was introduced, all these issues could have been discussed in the House.”
What did Jairam Ramesh say?
Earlier, Congress leader Jairam Ramesh had alleged that the proposed changes in the Taxation and Other Laws (Amendment) Bill, 2026, could end the statutory guarantee under which UPI transactions remain fee-free. He claimed that this could pave the way for imposing a Merchant Discount Rate (MDR) on digital payments in the future.
He also rejected the government’s argument that MDR is necessary to make UPI financially sustainable. Ramesh said the Reserve Bank of India (RBI) has sufficient resources to strengthen the digital payments system and there is no need to impose additional burdens on merchants or consumers. The Congress leader also cited the RBI’s planned transfer of a surplus of ₹2.86 lakh crore to the central government in fiscal year 2025-26.