BJD MP Opposes 0.4% UPI Merchant Fee, Suggests Government Funding
· Business · The Hindu, Times of India
Biju Janata Dal MP Santrupt Misra has criticised the Centre's decision to impose a 0.4% merchant discount rate on person-to-merchant UPI transactions exceeding ₹2,000. Speaking in New Delhi, Misra argued that the government could have funded the maintenance of the UPI network using a portion of the ₹2.86 lakh crore dividend received from the Reserve Bank of India in the 2025-2026 fiscal year. He further noted that the National Payments Corporation of India, which operates the UPI platform, is backed by major financial institutions that generated significant profits last year. Misra warned that the new fee, scheduled to take effect on October 15, will likely force merchants to either absorb the costs or pass them on to consumers. He rejected the government's stance that the charge would not impact the public, describing it as a misunderstanding of economic principles.
Why it matters
The introduction of the 0.4% fee directly impacts small and medium merchants who may face reduced profit margins or be forced to increase prices for consumers on transactions above ₹2,000.
Read the original report — The Hindu
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