Congress leader Supriya Shrinate on Wednesday, 16 September said it was 'bound to happen' after reports emerged that several shops in Delhi's Chandni Chowk market had stopped accepting UPI payments, warning that similar pushback could spread across the country if additional transaction charges are levied on customers.

What Shrinate Said

'This is bound to happen; this will happen. Because people are not going to pay extra money out of their own pockets. Today, this has happened in Chandni Chowk; tomorrow, it will happen across Delhi, and eventually across the country,' she said.

Shrinate argued that imposing surcharges on UPI transactions would push consumers back toward cash payments. 'The UPI system that was created — if you have to pay extra money, you will pay it or you won't. You will stop and pay in cash,' she said, adding that cash in the economy had grown from ₹17 lakh crore at the time of demonetisation to more than ₹40 lakh crore today — more than two and a half times higher.

Allegations Against the Government

The Congress leader went further, questioning the government's policy direction and alleging that its decisions on digital payments were being shaped by external commercial interests. 'We don't understand the intentions and policy of the government. They don't know what they are doing. They are doing this for the benefit of US companies and working under their pressure,' she said. The government has not directly responded to Shrinate's remarks, though the Finance Ministry on Wednesday categorically rejected the broader claim that any change in the MDR (Merchant Discount Rate) framework was driven by foreign influence, asserting that India's digital payments policy is determined independently.

Government's Position on UPI Charges

On Monday, the government announced that banks would not be permitted to impose charges on UPI transactions up to ₹2,000. A government gazette notification also confirmed that no charges can be levied on payments up to ₹2,000 made through RuPay-powered debit cards. The clarification came amid growing public anxiety over reports of potential surcharges on small-value digital transactions.

Context: Chandni Chowk and the Broader UPI Debate

Chandni Chowk, one of Delhi's oldest and busiest wholesale and retail markets, serves as a bellwether for small-merchant behaviour across urban India. The reported move by some traders to stop accepting UPI reflects anxiety among small businesses about absorbing any transaction costs that may be passed on to them. Notably, UPI adoption surged dramatically after the 2016 demonetisation, when cash was effectively withdrawn from circulation overnight. Critics argue that any reversal — even partial — of the zero-MDR regime risks undermining the digital payments ecosystem that took years to build.

With the government's gazette notification now in place, the immediate regulatory picture appears to protect small-value transactions. However, the debate over charges on higher-value UPI payments remains unresolved, and market participants are watching for further policy signals.