Political Row Over UPI MDR Fee Escalates; Opposition Attacks Move As NITI Aayog Defends Cost Model
A political faceoff has intensified over the Merchant Discount Rate charges on Unified Payments Interface transactions exceeding 2,000 rupees. The Bharatiya Janata Party accused the Congress of hypocrisy, noting the Parliamentary Standing Committee on Finance pushed for a tiered fee framework without dissent from its members. Meanwhile, the opposition labelled the charge a 'Modi Tax', claiming external pressure behind the decision. Defending the move, NITI Aayog Vice Chairman Ashok Kumar Lahiri stated that running the digital payment system incurs costs and the government cannot subsidise everything indefinitely. Authorities maintain that charges will only apply to high-volume merchants, leaving consumers and person-to-person transfers entirely exempt.