New Delhi, Sept. 16: BJP MP Anurag Thakur defended the new UPI Merchant Discount Rate (MDR), while NCP(SP) spokesperson Clyde Crasto criticised the move.
The new framework introduces a 0.4 per cent MDR on specified UPI merchant transactions above Rs 2,000.
The charge will apply from October 15, 2026. It will be capped at Rs 300 per transaction.
The government has clarified that customers will not pay the MDR directly.
Person to person UPI transfers will remain free, regardless of the transaction amount.
Payments to merchants up to Rs 2,000 will also remain free. The government said around 96 per cent of P2M transactions will remain unaffected.
Reacting to the development, Thakur highlighted the global recognition of India’s digital payments system.
“India’s digital transactions are now cited as an example across the world,” Thakur said.
He noted that even small businesses and roadside vendors widely use digital payments.
Thakur also criticised the Congress over its response to the development.
“I think the Congress’ only job is to mislead people and criticise,” he said.
He called for the report to be studied and examined in greater detail.
UPI MDR Draws Political Reactions
Thakur pointed to exemptions for transactions up to Rs 2,000 and said most merchant payments would remain unaffected.
“You do not have to pay anything on transactions up to Rs 2,000,” he said.
Meanwhile, NCP(SP) leader Clyde Crasto criticised the Centre over the new MDR framework.
Crasto argued that merchants could ultimately pass the additional cost on to consumers.
However, the Finance Ministry has advised banks to ensure that merchants do not transfer the MDR to customers.
The new MDR applies to specified person to merchant transactions. It does not apply to person to person UPI transfers.
The government said the framework aims to support the long term sustainability of the UPI payment ecosystem.
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