Telangana Chief Minister A. Revanth Reddy (IANS File photo)
Hyderabad, September 15 (IANS) Telangana Chief Minister A. Revanth Reddy said on Tuesday that increased MDR on merchant UPI transactions above Rs 2,000 threatens India’s zero-MDR digital payment model.
“The BJP Government may claim that customers will not be charged directly. But if merchants are forced to pay, the cost will ultimately be passed on to the common consumer through higher prices,” the Chief Minister said in a post on X.
The Congress leader stated that any increase in MDR (Merchant Discount Rate) is nothing but an indirect tax imposed by the Central Government on common people every day.
“Why should small businessmen & common man bear the burden of increased digital payment costs?” asked CM Revanth Reddy.
“There must be immediate clarity on the UPI (Unified Payments Interface) policy, with a permanent commitment to protecting UPI transactions from increased MDR. Keep UPI ZERO-MDR,” he added.
The Chief Minister quoted the post by the Leader of Opposition in Lok Sabha, Rahul Gandhi, who alleged that the Modi government has quietly opened the door to imposing fees on UPI.
“Now, MDR can be levied on merchant UPI transactions above Rs 2,000. Even if these transactions account for just 5% of the volume, they make up nearly 65% of UPI's total transaction value. The government says no fees will be charged to customers. But where will the fees imposed on shopkeepers ultimately come from? Added to prices, straight out of the customer's pocket,” said the Congress MP.
The Congress' attack came after the government directed banks and payment system providers not to levy charges on UPI transactions of up to Rs 2,000 or on payments made through RuPay debit cards.
The Leader of Opposition accused the Modi government of surrendering to American pressure.
“American payment companies have long opposed India's zero-MDR policy. Now, the Modi government has opened the path to changing the policy in exactly that direction. Just like with the US Trade Deal, Compromised PM Modi is once again surrendering to American pressure,” added Rahul Gandhi.
Congress chief Mallikarjun Kharge alleged that instead of providing relief to the inflation-weary public, the Modi government is searching for a new way every day to rob their pockets.
