Bhubaneswar, September 18, 2026 (Yes Punjab News)
Biju Janata Dal (BJD) president and Odisha Leader of the Opposition Naveen Patnaik on Friday called for protection of the interests of the common people and small traders amid the controversy over the recently announced Merchant Discount Rate (MDR) on certain Unified Payments Interface (UPI) transactions above Rs 2,000.
Patnaik made the remarks while responding to questions from the media after arriving at Biju Patnaik International Airport in Bhubaneswar.
The controversy centres on a 0.4 per cent MDR announced for specified merchant transactions above Rs 2,000. Patnaik said the impact of the new framework on ordinary users and small businesses needed to be considered.
The issue has also drawn criticism from the Odisha Congress. Senior Congress leader Sonali Sahoo, at a press conference on Thursday, compared the proposed MDR with the historical “Jizya tax” and alleged that the Union government had been adopting various measures to collect money from poor workers, labourers and the working class over the past 12 years.
Sahoo argued that imposing charges on UPI transactions above Rs 2,000 would further burden people facing inflation. She also alleged that US-based companies and payment-service providers had raised concerns about the free UPI system with the United States Trade Representative (USTR), leading to pressure on the Indian government to introduce transaction charges.
The Finance Ministry, however, has clarified that the revised UPI framework does not affect person-to-person transactions, which will remain free regardless of the amount transferred.
According to the ministry’s clarification, payments to merchants up to Rs 2,000 will also remain free, as will transactions covered under the zero-MDR framework for small merchants.
As a result, around 96 per cent of person-to-merchant UPI transactions will remain unaffected, while MDR will apply only to specified merchant transactions above Rs 2,000.
The National Payments Corporation of India (NPCI) recently announced the 0.4 per cent charge, prompting questions and concerns over its applicability.
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