Govt Rejects ‘Foreign Influence’ Claim in UPI Fee Debate
What Happened
The Centre rejected opposition allegations that the new 0.4% Merchant Discount Rate (MDR) on merchant UPI transactions above ₹2,000 was introduced under foreign or US pressure. The Finance Ministry said UPI policy decisions are made independently to build a self-sustaining, inclusive and affordable digital payments ecosystem. It also reiterated that UPI remains free for consumers, with charges applicable only to certain merchants.
Key Takeaways
The government is defending the UPI fee framework as a move to fund payment infrastructure, cybersecurity and ecosystem growth, while rejecting claims that the decision was influenced by foreign interests. Most users and small merchants will continue to use UPI without charges.