Congress MP Gaurav Gogoi raises concerns over new UPI MDR framework, questions financ
Congress MP Gaurav Gogoi raises concerns over new UPI MDR framework, questions finance panel consultation
M.U.H
17/09/202621
Congress Lok Sabha MP Gaurav Gogoi on September 17 raised concerns over the government's recent UPI-related policy changes, claiming that the Parliamentary Standing Committee on Finance had not discussed the proposal and that the Finance Department had not presented a specific proposal on the matter before the panel.
In a post on X, Gogoi said questions had been raised regarding the need for Merchant Discount Rate (MDR) during discussions with government representatives, but alleged that no specific or satisfactory answers were provided.
Gogoi claimed that the recent UPI policy changes would affect small merchants, vendors and entrepreneurs, while benefiting larger payment companies. He called for the withdrawal of the proposed changes.
He also reshared an earlier post by Congress leader Jairam Ramesh, who raised concerns over the Taxation and Other Laws (Amendment) Bill, 2026. Ramesh alleged that the amendment could remove the statutory guarantee keeping UPI transactions free and potentially pave the way for MDR charges.
Ramesh also questioned the government's argument that such measures were required to ensure the financial sustainability of the UPI ecosystem. He argued that the Reserve Bank of India has sufficient financial capacity to support the system without imposing charges on merchants or consumers.
The Congress leaders also raised questions about whether the proposed changes were connected to concerns mentioned in the US Trade Representative's 2026 report regarding India's UPI and RuPay payment systems.
The National Payments Corporation of India (NPCI) has introduced a new MDR framework under which UPI merchant transactions above ₹2,000 will attract an MDR of 0.4 per cent, while consumers will continue to use UPI without transaction charges.
The revised MDR framework is scheduled to come into effect from October 15, 2026, and will apply only to specified merchant transactions.
The government has not, in the material provided, responded to Gogoi and Ramesh's specific allegations regarding the Finance Committee's consultation or the rationale behind the proposed changes.
