New Delhi, September 17, 2026 (Yes Punjab News)
Congress MPs Gaurav Gogoi and Manish Tewari on Thursday said the Parliamentary Standing Committee on Finance had not discussed the specific 0.4 per cent Merchant Discount Rate (MDR) now being introduced on certain UPI merchant transactions above Rs 2,000.
The National Payments Corporation of India (NPCI) has announced a 0.4 per cent MDR on eligible person-to-merchant UPI transactions above Rs 2,000, with the charge to be borne by merchants. The new framework is scheduled to take effect from October 15.
Taking to X, Gogoi said the proposed UPI charge had not been discussed by the Finance Committee in its specific form. He claimed that when officials from the Department of Finance met committee members, they did not place before them a specific proposal relating to the UPI charge.
Gogoi also said committee members had raised questions about the need for MDR but, according to him, government representatives did not provide satisfactory answers.
He further argued that the new policy could affect small merchants, vendors and entrepreneurs.
Tewari backed Gogoi’s contention, saying parliamentary standing committee proceedings are privileged and should not, in his view, be used for political point-scoring. He also said the committee had not been presented with details such as the specific MDR rate or exemptions now forming part of the announced framework.
Tewari said members had raised concerns about the broader rationale and effectiveness of introducing MDR and rejected claims that the latest measure had received support from “certain members” of the committee.
The five Congress MPs who were members of the Finance Committee were former Finance Minister P. Chidambaram, Manish Tewari, Gaurav Gogoi, Kishori Lal and K. Gopinath.
However, government sources have disputed the Congress MPs’ account. They said the Finance Committee’s August report recommended a tiered MDR and revenue framework for UPI and that the five Congress MPs were present when the report was adopted on August 12, with no dissent recorded in the published minutes.
The government has cited the committee’s recommendation that the Department of Financial Services explore a self-reliant tiered revenue model to ensure the long-term financial sustainability of the UPI ecosystem.
The disagreement has emerged amid a wider political debate over the decision to introduce MDR on selected high-value merchant UPI transactions..
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