Lucknow: Uttar Pradesh Congress president Ajay Rai on Wednesday opposed the new Merchant Discount Rate (MDR) on select UPI transactions, alleging it would ultimately raise costs for consumers as traders pass on the added expense.The National Payments Corporation of India (NPCI) has notified a 0.4% MDR on specified person-to-merchant UPI transactions above Rs 2,000 from Oct 15. Consumers will not be charged directly. Person-to-person transfers and merchant payments up to Rs 2,000 will remain free.Rai said the govt had repeatedly promised UPI would stay free, but had now introduced a charge on merchant transactions above Rs 2,000.“The govt may say that the customer will not pay it, but the question is: from whose pocket will the trader recover this cost?” he said.He argued the additional fee could be built into product prices, increasing the burden on consumers, workers, students and small traders. Rai also alleged the decision was taken under pressure from American companies and would benefit foreign payment firms.The govt has rejected allegations of foreign influence, saying the MDR framework is intended to support the sustainability, security and expansion of the UPI ecosystem.Rai urged the Centre to withdraw the decision and keep UPI completely free, citing inflation pressures.
