Congress president Mallikarjun Kharge has launched a political attack on the Modi government over the latest regulatory changes governing charges on Unified Payments Interface (UPI) transactions.
Kharge questioned the government's decision to specifically prohibit charges on UPI transactions up to ₹2,000, arguing that the move could open the door to charges on higher-value digital payments.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: Kharge criticises the latest UPI fee framework
Location: New Delhi / India
Authority/Organisation: Indian National Congress; Ministry of Finance
Action Taken: Government notified a no-charge protection for UPI transactions up to ₹2,000
Impact: Debate intensifies over the possibility of future charges on selected higher-value merchant transactions
In his remarks, Kharge accused the government of moving away from the earlier understanding that UPI would remain free and described the possible introduction of charges on larger transactions as a burden on consumers and merchants.
The Congress leader also linked the issue to the government's earlier push for digital payments and the broader objective of creating a less-cash economy.
However, the current government notification does not impose a UPI tax or a fixed fee on transactions above ₹2,000. The Finance Ministry's September 14 notification specifies UPI transactions up to ₹2,000, along with RuPay-powered debit card payments, as electronic modes on which banks and system providers cannot impose direct or indirect charges.
Editorial Analysis
Why This Matters
The issue directly affects India's rapidly expanding digital payment ecosystem. While the government says ordinary users and P2P transactions will remain free, the new framework leaves room for future MDR arrangements for certain merchant transactions above the protected threshold. For consumers and businesses, the key question is whether any future merchant-level charges could indirectly affect prices or payment costs.
The government had earlier stated that consumers would not face transaction charges on UPI and that any future Merchant Discount Rate (MDR) would be limited to selected merchant transactions above a specified threshold. Person-to-person UPI transactions are also expected to remain free.
Kharge's criticism comes amid growing political debate over what the new framework could mean for high-value digital payments.
