Congress Accuses Modi Government of Surrendering to U.S. Pressure on UPI Fee Plans
· India · The Hindu, Times of India
Congress leader Rahul Gandhi alleged on September 15, 2026, that Prime Minister Narendra Modi’s government is quietly enabling UPI transaction fees—specifically targeting merchant payments above ₹2,000—under pressure from the U.S. Gandhi claimed these transactions, though only 5% of volume, account for 65% of UPI’s total value, and that fees on shopkeepers will ultimately be passed to customers. The government has directed banks to waive charges on UPI transactions up to ₹2,000 but has not yet decided on merchant discount rates (MDR) for higher-value payments. Gandhi linked the move to American payment firms’ long-standing opposition to India’s zero-MDR policy, accusing the government of compromising national interests to appease U.S. President Donald Trump. The Congress party also criticized the lack of transparency, calling it a betrayal of user trust.
Why it matters
Millions of Indian consumers and small merchants rely on UPI for daily transactions, and any fee hike could increase costs for shopkeepers and end-users. The move risks undermining India’s digital payment ecosystem, which has been a global model for low-cost, cashless transactions, while potentially opening doors for foreign payment firms to gain a foothold in the market.
Read the original report — The Hindu
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