Photo Courtesy: nenow
Guwahati: Assam Pradesh Congress Committee president Gaurav Gogoi is calling out the Centre over its new 0.4 percent Merchant Discount Rate for UPI payments. The charge hits specific person-to-merchant transactions over Rs 2,000 starting October 15, 2026. Fees cap out at Rs 300 for any payment of Rs 75,000 or more. Government officials insist 96 percent of merchant transactions remain untouched by the change.
Gogoi highlighted a June 11, 2025, Finance Ministry statement. That memo labeled earlier reports of UPI fees as false, baseless and misleading. He wants to know why the government walked back its stance. The shift creates questions about revenue distribution for heavy hitters like PhonePe, Google Pay, and Paytm. The Congress leader pointed to the ownership structures of these apps, suggesting the move favors major players.
The government claims the levy is not a tax. Revenue goes to banks and app providers to keep the UPI network running. Officials say they want a sustainable model without charging regular people. Gogoi remains skeptical. He linked the policy to household stress from high inflation and unemployment. He asked why this fee is necessary now.
Standard person-to-person transfers stay free. Merchants taking payments under Rs 2,000 face no new costs. Eligible small merchants also keep their zero-MDR status.
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