Congress MPs Backed Tiered UPI Revenue Model In Parliamentary Panel Meeting, Says Govt
Five Congress MPs, including former finance minister P Chidambaram, were present when the Parliamentary Standing Committee on Finance approved a report recommending a tiered revenue mechanism for UPI, with no dissent recorded in the published proceedings. The development comes amid a political dispute over the Centre’s decision to introduce a 0.4% Merchant Discount Rate (MDR) on specified…
A Parliamentary Standing Committee on Finance approved a report on August 12, recommending a tiered revenue mechanism for UPI transactions. Five Congress MPs, including former finance minister P Chidambaram, were among the present members who approved the report, with no dissent recorded. The UPI transactions above Rs 2,000 will now be subject to a 0.4% Merchant Discount Rate (MDR), while person-to-person UPI payments will remain free.
The government has cited the committee's recommendations in response to Congress leader Rahul Gandhi's criticism, alleging that the MDR would benefit US-based payment companies. The committee highlighted concerns over the long-term financial sustainability of the UPI ecosystem, stating that government support may not be sufficient to cover operational expenses like cybersecurity, fraud prevention, and infrastructure investments.
The committee emphasized the need for a sustainable funding structure to support UPI's growth in transaction volumes and users, particularly in smaller cities and towns.
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