India's UPI policy decisions made independently, says Finance Ministry
Key Highlights
- Finance Ministry clarifies UPI charges are not due to foreign influence.
- % MDR on UPI transactions over Rs 2,000.
- Payments for essential services will have a flat fee of Rs 5.
The government has rubbished claims of 'foreign influence' in its decision to impose a 0.4 per cent MDR. Or merchant discount rate, on UPI transactions over Rs 2,000.
This MDR will be levied on payments to merchants only and will not impact person-to-person payments, the government stressed Wednesday.
The Finance Ministry released a detailed note on the new charges. This includes assuring lakhs of UPI users across the country that 'everyday payments are safe'. Pointing out that over 95 per cent of merchant transactions are below the Rs 2,000 threshold that will invite the 0.4 per cent fee.
And in another critical clarification, the government also shared payments for essential services - such as train ticket booking, fuel and telecom payments - would have a flat fee of Rs 5 per transaction above Rs 2,000.
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Senior Congress leader Jairam Ramesh demanded to know if the move was intended to benefit American credit card companies.
UPI continues to be free for customers. Sending money to friends, paying at shops, or scanning a QR code — all remain without charges.
Key Facts: ✅ No charges on P2P: Person-to-Person transfers are always free, regardless of amount. ✅ Small….
The pushback came after the Congress accused the government of surrender to a 'demand' by the United States to impose a new charge on some UPI payments from October 15.
"He has put a tax on every single Indian person by taxing UPI and giving a huge amount of money to the United States. ".
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The Finance, Ministry said.: "Some claims suggest the change is due to foreign influence. This is false. India’s UPI policy decisions are made independently, with the clear goal of building a self-sustaining, inclusive, and affordable digital payments ecosystem."
"decided to lie down straight and prostrate himself in front of US President Donald Trump ".
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