New Delhi – BJP leader Amit Malviya has strongly dismissed allegations by the Congress party that the government plans to impose a 0.5% charge on Unified Payments Interface (UPI) transactions above ₹2,000. Malviya labeled the Congress's claims as “completely false” and an attempt to spread “fake fear” among the public.
No Government Order on UPI Charges, Says Malviya
In a public statement, Malviya clarified that no government order, tax, or consumer charge of 0.5% has been fixed for UPI payments over ₹2,000. He specifically addressed the Congress's examples of a ₹25 charge on a ₹5,000 payment and ₹50 on a ₹10,000 payment, stating these were based on an “imaginary 0.5% rate.”
According to Malviya, person-to-person UPI transactions continue to be free for any amount. He highlighted that the government has consistently provided incentives to maintain a free UPI ecosystem, citing significant allocations: ₹1,389 crore in FY22, ₹2,210 crore in FY23, and ₹3,631 crore in FY24. For the current fiscal year (2025-26), ₹2,196.21 crore has been provided, with ₹2,000 crore budgeted for FY27.
Understanding the September 14 Notification
Malviya explained that a September 14 notification, which the Congress referenced, only serves to clarify the zero-charge protection for UPI and RuPay debit card transactions up to ₹2,000. He emphasized that this notification does not introduce new charges for higher amounts. He also added that any future Merchant Discount Rate (MDR) would apply to limited merchant transactions and not directly to consumers.
Congress's Allegations and Rahul Gandhi's Concerns
Earlier in the day, the Congress party, via its official social media handle, claimed that the government was preparing to levy a 0.5% charge on UPI payments above ₹2,000. Congress leader Rahul Gandhi further alleged that the government had “quietly paved the way” for fees on UPI transactions. He expressed concern that even if MDR were imposed only on merchants, the cost could eventually be passed on to consumers through elevated prices.
Jairam Ramesh, Congress General Secretary in charge of communications, echoed these sentiments, suggesting that the September 14 notification explicitly protected only UPI transactions below ₹2,000 from charges, implying charges for higher amounts.
Government's Stance on Payment Systems Act
The government notification, issued under the amended Payment and Settlement Systems Act, 2007, states that banks and payment system providers cannot impose any charge, directly or indirectly, on individuals making or receiving a RuPay debit card or UPI payment of up to ₹2,000. The amendment to Section 10A of the law creates an enabling framework for potentially imposing MDR on UPI and other notified electronic payment modes in the future. This amendment was passed by Parliament during the Monsoon Session, which concluded on August 13.
Following its passage, the government indicated that the UPI and Services Steering Committee, led by NPCI, would determine future MDR rates. Such charges, it noted, could help fund cybersecurity, fraud prevention, and infrastructure upgrades, creating a self-sustaining revenue model and encouraging greater participation from payment companies.