Despite Centre's denial, Rahul sticks to UPI tax claim, says PM bowed to Trump
· India · India Today, Deccan Herald
Congress leader Rahul Gandhi demanded an immediate rollback of the new 0.4% merchant discount rate (MDR) on UPI transactions above ₹2,000, calling it a ‘UPI tax’ and alleging it benefits the US. The Centre dismissed the claim, stating the MDR is not a tax and will not be borne by consumers, with the fee capped at ₹300 for transactions over ₹75,000. Gandhi accused Prime Minister Narendra Modi of ‘prostrating’ before US President Donald Trump, tweeting that the move diverts money to the US and likening Modi’s stance to ‘lying down straight.’ The Finance Ministry clarified that UPI policies are independently decided and that the MDR is distributed among payment ecosystem players, not the government. The row escalates as Congress frames the decision as foreign pressure, while the government insists on domestic policy autonomy.
Why it matters
Millions of Indian UPI users and merchants face higher transaction costs under the new MDR, with small businesses potentially bearing the burden despite government assurances. The political fallout risks further polarisation ahead of elections, as Congress leverages the controversy to challenge the government’s economic policies and foreign relations.
Read the original report — India Today
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