Government can bear cost of maintaining UPI network: BJD MP Santrupt Misra
Santrupt Misra said the National Payments Corporation of India (NPCI), which operates UPI, has large financial banks and platforms as its shareholders and promoters
BJP MP Santrupt Misra expressed concerns on September 19, 2026 regarding the Indian government's decision to impose a merchant discount rate (MDR) of 0.4% on UPI transactions over ₹2,000. Misra argued that the government had ample resources to fund the UPI network and fund its maintenance.
In 2025-2026, the Reserve Bank of India (RBI) had paid the government a dividend of ₹2.86 lakh crore. This money could easily be set aside for the digital transaction infrastructure, Misra suggested. He pointed out that the National Payments Corporation of India (NPCI), which operates UPI, is owned by large financial banks and platforms. These companies made a profit of ₹2.5 lakh crore in the previous year and could contribute a small portion of that to the digital transaction system.
Misra also worried that the 0.4% fee could force merchants to either lower their profit margins or pass the cost onto consumers. The government claims the MDR will not affect consumers, but Misra views this as a misunderstanding of economic principles. The 0.4% fee on UPI payments over ₹2,000 to merchants will be implemented starting October 15.
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