'Narendra’s Ongoing Trump Appeasement': Congress's dig at PM on UPI move
Jairam Ramesh asked whether the government's move on MDR was done to enable U.S. card companies to compete with UPI
On September 16, 2026, the Congress accused the government of bowing to a U.S. demand to introduce a Merchant Discount Rate (MDR) on UPI transactions and charge users for using the platform. Congress general secretary for communications Jairam Ramesh questioned whether the government's move was aimed at enabling U.S. card companies to compete with UPI.
He pointed out that the U.S. House of Representatives was set to vote on a bill that would impose 100% tariffs on India, following its approval by the U.S. Senate. Ramesh criticized the Modi government for giving in to U.S. pressure, likening the PM's actions to "Narendra’s Ongoing Trump Appeasement." The Congress leader also questioned the justification for imposing a 0.4% MDR on UPI transactions, given the relatively low cost of running the UPI ecosystem, which is estimated to be around ₹20,000 crore annually.
The finance ministry clarified that the MDR would only apply to merchants and not to individuals making UPI payments, and that customers would not be required to pay any charges for such transactions. The opposition parties, particularly the Congress, have strongly criticized the move, alleging that it is a "Modi tax" and that the government is succumbing to U.S. pressure.
The BJP, in response, accused the Congress of spreading "fake news" and maintaining that the government had made it clear that MDR charges would not be levied on consumers.
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