Debate Intensifies Over UPI Transactions: Politics vs Policy

BJP leader Karunasagar criticized Congress and Rahul Gandhi over the revised UPI Merchant Discount Rate framework, suggesting political motives behind their opposition. While the government clarified MDR as a facilitative charge, not a tax, opposition claims it burdens ordinary citizens. The framework is set to take effect in October 2026.

The political debate over the revised Unified Payments Interface (UPI) Merchant Discount Rate (MDR) escalated on Thursday as BJP leader Karunasagar accused Congress of aiming for political slogans against Prime Minister Narendra Modi. He questioned whether Congress genuinely opposes UPI or seeks political ammunition.

Karunasagar noted that Congress members, including P Chidambaram and Manish Tewari, were present when the Parliamentary Standing Committee recommended a tiered revenue model for UPI. He dismissed claims of an 'UPI tax' by Rahul Gandhi as baseless, highlighting that the Union Finance Ministry rejected these allegations.

Explaining the MDR framework, Karunasagar clarified that it targets only specific person-to-merchant transactions above Rs 2,000, exempting smaller transactions and not burdening customers. Meanwhile, opposition leaders argue that the framework, effective from October 15, 2026, would financially strain ordinary citizens despite the Centre's rebuttals.