Congress MP and Lok Sabha Leader of Opposition Rahul Gandhi has demanded an immediate rollback of what he termed the “UPI tax”—a framework introducing a 0.4 per cent Merchant Discount Rate (MDR) on specific merchant transactions exceeding Rs 2,000.
While the government maintains that customers will not be directly charged MDR, the policy has triggered a major political showdown.
In a video message shared on X with the caption, “Modi ji, roll back the UPI tax. Now,” Gandhi accused Prime Minister Narendra Modi of imposing an indirect tax on citizens and succumbing to American pressure.
Modi ji, roll back the UPI tax. Now. pic.twitter.com/IIt46zMgCG
— Rahul Gandhi (@RahulGandhi) September 16, 2026
Claiming that US payment companies have long opposed India’s zero-MDR policy, Gandhi asserted that shopkeepers forced to pay the fee will ultimately recover costs by raising retail prices, directly hurting consumers.
“Modiji, please stop lying down in front of the United States, have a spine, stand straight and take back the UPI tax,” Gandhi stated in his video message.
The new framework, stemming from recent statutory updates, aims to fund system upgrades and security, while person-to-person (P2P) transfers and transactions up to Rs 2,000 remain free.
However, the Opposition continues to press the Centre, arguing that the structure undermines digital financial inclusion for the common public.
