UPI charges row: Karnataka Congress stages protest, demands Centre withdraw proposed fee
Bengaluru, Sep 17 (IANS) The Congress on Thursday demanded that the Centre withdraw the proposed Merchant Discount Rate (MDR) on certain UPI transactions above Rs 2,000, alleging that the move would increase the financial burden on the common people and small traders.
Congress leaders and workers staged a protest in Bengaluru demanding that Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman reconsider the decision.
The protesters said the proposed 0.4 per cent MDR on specified merchant transactions above Rs 2,000 from October 15 had caused concern among the public. They said UPI had become an integral part of daily life for ordinary people, small traders, employees and the middle class, and argued that any additional charge could increase costs for businesses and ultimately affect consumers.
They demanded clarity from the Union government and urged it to ensure that people were not subjected to an additional financial burden through digital payments.
The Congress leaders also said that rising prices of essential commodities had already made it difficult for ordinary families to manage expenses related to food, transport, fuel and household requirements. They claimed that the Centre’s policies were increasing the burden on people instead of reducing it.
The protesters further alleged that unemployment had increased and accused the NDA government at the Centre of imposing additional financial burdens through new charges and taxes.
They also criticised the government’s foreign policy and alleged that the Centre was yielding to pressure from US President Donald Trump instead of protecting the interests of Indians.
The Congress leaders demanded that the proposed UPI fee structure be withdrawn immediately and called for steps to reduce the financial burden on the people.
KPCC general secretary S. Manohar, along with Congress leaders A. Anand, G. Prakash, Lakshminarayan, Umesh, Anand, Puttaraju, Chandrashekhar, Kushal Haravegowda, Ranjit Kumar Madhavanhunur and Praveen Rao, among others, participated in the protest.
Meanwhile, Deputy Chief Minister G. Parameshwara opposed the proposed introduction of a 0.4 per cent MDR on specified UPI merchant transactions above Rs 2,000, calling it a step backwards for India’s digital payments journey.
He said UPI became successful because it was simple, accessible and free, helping citizens and small businesses shift from cash to digital payments. Though the government has said consumers will not be charged directly, Parameshwara argued that higher costs imposed on merchants could eventually be passed on to consumers through prices or other charges.
Citing Congress MP and Leader of the Opposition in the Lok Sabha, Rahul Gandhi, he alleged that the PM Modi government was yielding to American pressure and opening India’s digital payments ecosystem to foreign corporate interests.
Dy CM Parameshwara also raised concerns over the role of large banks, fintech companies and global technology firms in the UPI ecosystem.
He urged the Centre to reconsider the decision and protect affordable digital payments.
It can be noted that under the framework announced on September 15, a 0.4 per cent MDR applies to specified person-to-merchant UPI transactions above Rs 2,000, while person-to-person transactions remain free.
The Finance Ministry has also clarified that customers will not directly pay the MDR and that around 96 per cent of merchant transactions will remain unaffected.
–IANS
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