MDR is a ‘semantic cover-up’, consumers will ultimately bear burden: Saamana editorial

Mumbai, September 19, 2026 (Yes Punjab News)

The Shiv Sena (UBT) has criticised the Centre over the reported introduction of a Merchant Discount Rate (MDR) on select UPI transactions, arguing that the move will ultimately increase the financial burden on consumers and small retailers.

In an editorial published in its mouthpiece Saamana on Saturday, the Uddhav Thackeray-led party described the proposed 0.4 per cent fee on UPI transactions above Rs 2,000 as a “semantic cover-up”, questioning the government’s position that the charge would apply to merchants rather than directly to consumers.

The editorial argued that merchants could eventually pass the additional cost on to customers, drawing a comparison with taxes and other costs that are incorporated into the prices paid by consumers.

Saamana also alleged that India’s digital payments infrastructure was being opened up to global financial and payment companies such as Visa and Mastercard. It characterised the proposed fee as an indirect burden on India’s middle class and retail traders while alleging that it would benefit US-based financial interests.

The editorial also linked the issue to the Modi government’s foreign policy, alleging that Prime Minister Narendra Modi has repeatedly yielded to pressure from the United States. It cited India’s approach towards oil purchases from Iran, US trade tariffs and diplomatic demands from the Trump administration in support of its argument.

“The decision to impose a 0.4 per cent fee on UPI transactions was taken solely to flatter U.S. fintech companies,” the editorial alleged, while calling for an investigation into what it described as potential financial benefits to Indian intermediaries associated with such companies.

The Shiv Sena (UBT) mouthpiece further questioned government narratives around India’s digital payments expansion and the adoption of UPI in countries including Singapore, the UAE, Mauritius and Sri Lanka.

It contrasted the international promotion of UPI with what it described as rising financial pressure on domestic consumers and traders. The editorial alleged that policies including demonetisation, GST, inflation and transaction charges had placed a disproportionate burden on the middle and working classes.

The party argued that the digital transformation agenda should not result in additional costs being passed on to ordinary citizens or strengthen the position of corporate and foreign intermediaries at their expense.