Congress leader Vijay Wadettiwar has strongly criticised the Centre over the newly announced Merchant Discount Rate (MDR) on certain high-value UPI merchant transactions, warning that his party will launch a major protest against the move.
Reacting to the new UPI payment framework, Wadettiwar alleged that the government was putting an additional financial burden on ordinary people while extending benefits to wealthy sections.
“The government is in a position where it is practically begging. On one hand, they provide benefits to the rich and waive their loans, and on the other hand, they are burdening the poor,” Wadettiwar said.
What did Vijay Wadettiwar say about UPI charges?
Wadettiwar questioned the introduction of charges on large online business transactions and claimed that a ₹2 lakh transaction could attract an ₹800 fee.
“If a business transaction takes place online up to Rs 2 lakh, they would have to pay Rs 800 as a fee. This is nothing but a way to extract money from people,” he said.
However, under the new framework announced by the government and NPCI, the standard MDR for eligible person-to-merchant UPI transactions above ₹2,000 is 0.4%, while transactions of ₹75,000 and above have a maximum MDR of ₹300 per transaction. The framework is scheduled to take effect from October 15, 2026.
Government says customers will not pay MDR
The government has clarified that the new MDR is a charge within the merchant payment ecosystem and is not a fee imposed directly on customers.
Person-to-person UPI transactions will remain completely free, regardless of the amount transferred. Merchant payments up to ₹2,000 will also remain free, while eligible small merchants will continue to receive zero-MDR benefits.
The Finance Ministry has also said banks have been advised to ensure that merchants do not pass the MDR charge on to customers.
Wadettiwar warns of major protest
Despite the government’s clarification, Wadettiwar said the Congress would raise its voice against the new system.
“We need to raise our voice against this. There will be a major protest against this, and the public will not tolerate it,” he said.
The Congress leader’s remarks come as the new UPI MDR framework triggers a political debate over the cost of maintaining India’s rapidly expanding digital payment infrastructure.
The government has said the framework is intended to support the long-term sustainability of UPI while keeping person-to-person payments and most merchant transactions free of MDR. According to the Finance Ministry, around 96% of merchant UPI transactions will remain unaffected.
