Rahul Gandhi demanded immediate withdrawal of new merchant charges on UPI payments.
He accused Modi of burdening Indians and capitulating before Donald Trump.
Merchants will pay 0.4 per cent on eligible payments above ₹2,000.
Lok Sabha Leader of Opposition Rahul Gandhi on Wednesday launched a scathing attack on Prime Minister Narendra Modi, urging the latter to "grow a spine" and rollback the government’s new UPI merchant-charging framework.
The Congress MP described the framework as a “UPI tax” and alleged that Modi had imposed a burden on Indians while “giving huge amounts of money to the United States”.
The framework, effective October 15, 2026, introduces a merchant discount rate (MDR) on specified person-to-merchant UPI payments above ₹2,000. Merchants will pay the charge, while consumers can continue using UPI without a direct fee.
'He Has Decided To Lie Down'
In a video posted on X with the caption, “Modi ji, roll back the UPI tax. Now”, Gandhi compared Modi’s approach with that of former Prime Minister Indira Gandhi.
“Indiraji was once asked whether she leaned to the left or the right. Her response was, ‘I don't go left or right, I stand straight,’” he said.
“Modiji is completely different. He is neither left nor right. He has decided to lie down straight and prostrate himself in front of Donald Trump,” Gandhi added.
“He has put a tax on every single Indian person by taxing UPI and giving huge amounts of money to the United States,” the Congress leader alleged.
Gandhi asked Modi to “stop lying down in front of the United States”, “have a spine” and withdraw the charge.
How Much Will Merchants Pay?
Under the standard person-to-merchant structure, UPI payments above ₹2,000 will attract an MDR of 0.4 per cent.
A merchant receiving ₹3,000 will pay ₹12, while the charge on a ₹50,000 payment will be ₹200.
The fee will be capped at ₹300 for transactions of ₹75,000 and above. Therefore, while 0.4 per cent of a ₹1 lakh payment is ₹400, the merchant will pay only ₹300.
Person-to-person UPI transfers will remain outside the new structure.
Flat ₹5 Fee For Selected Services
Railways, telecom services, insurance, fuel and specified public utilities will attract a flat MDR of ₹5 on UPI payments above ₹2,000 instead of the standard percentage-based charge.
Petrol pump operators will pay ₹5 on fuel payments exceeding ₹2,000. Payments below that amount will not attract MDR.
The same rule will apply to insurance premiums and payments for electricity, water and piped natural gas.
