BJD protests UPI changes, says Centre should fund digital payments
The Biju Janata Dal (BJD) has firmly dismissed the government's recent proposal to impose fees on UPI transactions that exceed two thousand rupees. Party officials emphasized the need for the Centre to seek alternative funding sources for enhancing digital infrastructure. They proposed tapping into the Reserve Bank of India's dividends for this purpose, warning that this charge could adversely…
The Biju Janata Dal (BJD) has objected to the Centre's decision to introduce a 0.4 per cent merchant discount rate (MDR) on UPI transactions exceeding Rs 2,000, with Rajya Sabha MP Santrupt Misra arguing that the government should find alternative means to fund the digital payment system. The new charge is set to start on October 15 and could either reduce merchants' profit margins or ultimately be transferred to consumers.
Misra contended that the government could have absorbed the cost of sustaining the UPI network instead of imposing the charge. In the fiscal year 2025-2026, the Reserve Bank of India distributed a dividend of Rs 2.86 lakh crore to the government, which could have been allocated towards the digital transaction infrastructure, according to Misra.
He also highlighted the financial stability of banks and platforms that serve as shareholders and promoters of the National Payments Corporation of India (NPCI), the body responsible for UPI operations.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
