Bengaluru, September 16, 2026 (Yes Punjab News)
AICC General Secretary Randeep Singh Surjewala has accused the Union government of placing an additional financial burden on citizens by introducing a Merchant Discount Rate (MDR) on certain UPI transactions above Rs 2,000, alleging that the move could undermine India’s digital and cashless payments ecosystem.
In a statement, Surjewala described September 14 as a day of “digital somersault” and “betrayal and surrender”, alleging that the government had paved the way for a 0.4 per cent MDR on specified Person-to-Merchant (P2M) UPI transactions above Rs 2,000.
He alleged that amendments to the Payment and Settlement Systems Act, 2007, had created a mechanism through which UPI-related charges could be introduced without separate parliamentary approval for every subsequent change. Surjewala also questioned the Taxation and Other Laws (Amendment) Bill, 2026, which amended provisions relating to Section 10A of the Act.
Citing government figures, Surjewala said UPI processed 24,162 crore transactions worth around Rs 314 lakh crore during 2025-26. He projected the transaction value could reach Rs 400 lakh crore in 2026-27 and estimated that a 0.4 per cent MDR on qualifying merchant transactions could create a substantial additional cost for businesses.
Surjewala argued that traders, shopkeepers and merchants could eventually pass the cost on to consumers through higher prices. He also expressed concern that charges could potentially be extended to other categories, including Person-to-Person transactions, or increased in the future.
The Congress leader questioned the role of foreign-owned payment platforms, including PhonePe and Google Pay, in the UPI ecosystem and asked whether companies benefiting from India’s digital public infrastructure should contribute through participation fees.
Surjewala also cited NPCI’s financial position, government transfers and bank-related charges while questioning the rationale for imposing MDR.
The government, however, has maintained that UPI users and all P2P transactions will remain free. Under the framework announced on September 15, MDR applies only to specified merchant transactions above Rs 2,000, with approximately 96 per cent of P2M transactions remaining unaffected. The government has also clarified that MDR is not a tax or a charge collected by the government or NPCI.
Surjewala has demanded answers from the Centre on the rationale behind the changes and sought clarity over the future of UPI charges.
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