India
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Rahul Gandhi demands rollback of 0.4 percent UPI MDR
The Indian Express··18 Sept
Rahul Gandhi on September 16, 2026 asked Prime Minister Narendra Modi to roll back what he termed a UPI tax after NPCI's revised merchant pricing framework. From October 15, 2026 a 0.4 percent Merchant Discount Rate applies to eligible person-to-merchant UPI transactions above Rs 2,000, capped at Rs 300 for Rs 75,000 and above. Person-to-person transfers stay free.
Prism
What It Means For You
- From October 15, 2026, eligible person-to-merchant UPI payments above Rs 2,000 carry a 0.4 percent MDR borne by the merchant.
- The fee is capped at Rs 300 for transactions of Rs 75,000 and above.
- Person-to-person UPI transfers stay free under the revised NPCI merchant pricing framework.
What's Happening
- Rahul Gandhi on September 16, 2026 asked Prime Minister Narendra Modi to roll back what he termed a UPI tax.
- The demand followed NPCI's revised merchant pricing framework for specified UPI merchant transactions.
- Gandhi said the charge puts a tax on every Indian and routes money to the United States.
How the MDR Works
- The government says customers are not charged MDR directly, while critics say shops may add the cost to prices.
- Times of India reported around 96 percent of person-to-merchant transactions remain unaffected.
- A flat Rs 5 charge applies to some utility bill payments under the same framework discussion.
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