Congress Criticizes Government Move to Charge for UPI Transfers
· India · The Hindu, India Today
The Congress party has accused the Indian government of bowing to US pressure by introducing a 0.4% fee on UPI transfers exceeding ₹2,000 to merchants, effective October 15. Party leader Jairam Ramesh alleged that the decision aims to help US-based card companies like Visa and Mastercard compete with the UPI ecosystem. Ramesh further claimed that the U.S. Trade Representative had previously criticized India's free UPI model for displacing international card networks. The Congress also linked this policy shift to broader tensions, citing proposed US tariffs and stricter H-1B visa regulations affecting Indian IT professionals. The government maintains that the fee is intended to ensure the long-term sustainability of the UPI infrastructure.
Why it matters
The introduction of a 0.4% fee on large merchant UPI transactions marks a significant shift in India's digital payment landscape, potentially altering consumer and merchant behaviour.
Read the original report — The Hindu
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