Congress Slams Modi Government Over 'Anti-National' UPI Move

The Indian Congress party has spoken out against the introduction of a merchant discount rate (MDR) on transactions made using the Unified Payments Interface (UPI). The move, which will apply to person-to-merchant UPI transactions above ₹2,000 from October 15, has been criticized by the Congress as 'anti-national' and an attempt by the Modi government to appease US pressure.

Congress general secretary Jairam Ramesh accused the government of giving in to US demands to get rid of zero MDR and charge for UPI. The US Trade Representative had earlier this year criticized UPI for being free, saying it had driven out Visa and Mastercard. Ramesh questioned whether the 0.4% MDR was being introduced to enable US card companies to compete with UPI.

Karnataka chief minister DK Shivakumar also spoke out against the move, calling for a nationwide campaign against the introduction of MDR on UPI transactions. He stated that this is not just an issue for the Congress party but concerns the entire nation. The Congress has accused the government of caving in to US pressure and hurting Indian digital payments companies like RuPay.

AICC general secretary Randeep Surjewala questioned the government's rationale for introducing charges, citing NPCI's financial position and the costs incurred by banks and the digital payments ecosystem. He noted that NPCI had reported a pre-tax operating profit of ₹1,900 crore and held ₹6,119 crore in cash, while the government collected about ₹1,000 crore in tax from NPCI in the previous year.

The introduction of MDR on UPI transactions has been seen as an attempt by the Modi government to benefit card companies like Visa and Mastercard. The Congress has demanded that this 'anti-national' decision be immediately withdrawn and UPI kept free of charge as before.