Surjewala criticizes proposed UPI transaction charges

AICC General Secretary Randeep Singh Surjewala has criticized the Indian government for introducing a Merchant Discount Rate (MDR) on certain Unified Payments Interface (UPI) transactions. The proposed 0.4 per cent MDR would apply to specific Person-to-Merchant (P2M) transactions exceeding Rs 2,000.

Surjewala warned that these additional levies could place a significant financial burden on small traders and merchants, who may ultimately pass the costs to consumers through increased prices. He expressed concern that amendments to the Payment and Settlement Systems Act, 2007, allow the government to adjust or increase these charges via notifications without seeking further parliamentary approval.

Citing official data, Surjewala noted that UPI processed 24,162 crore transactions worth approximately Rs 314 lakh crore during 2025-26, with values expected to exceed Rs 400 lakh crore in 2026-27. He also questioned the role of foreign-owned payment platforms, such as Google Pay and PhonePe, regarding their contributions to the digital public infrastructure and their access to consumer data.