Leader of the Opposition in the Lok Sabha, Rahul Gandhi, on Tuesday, 15 September 2026, launched a sharp attack on the Centre over its decision to permit fees on UPI transactions above ₹2,000, alleging that the move would ultimately burden consumers. The Bharatiya Janata Party (BJP) hit back swiftly, accusing Gandhi of spreading lies and fake news, as the political row over the National Payments Corporation of India (NPCI)'s revised Merchant Discount Rate (MDR) framework escalated.

What Rahul Gandhi Said

In a post on X, Gandhi alleged that the Modi government had 'quietly opened the door to imposing fees on UPI.' He pointed out that while transactions above ₹2,000 account for only 5% of UPI volume, they represent nearly 65% of the platform's total transaction value — making the charge economically significant despite its narrow scope.

Gandhi argued that even though the government had stated no fees would be charged directly to customers, the burden would inevitably pass through. 'Where will the fees imposed on shopkeepers ultimately come from? Added to prices, straight out of the customer's pocket,' he said. He also alleged that the shift aligned with the longstanding position of American payment companies, which he claimed had 'long opposed India's zero-MDR policy.'

The BJP's Rebuttal

BJP national spokesperson Pradeep Bhandari dismissed Gandhi's claims as deliberate misinformation. He described the Congress leadership as 'a naraz fufa who run a shop of lies,' and argued that the Congress had historically opposed Prime Minister Narendra Modi's push for digital payments. 'Congress has been a historical opponent of the digital financial revolution achieved by India under PM Modi,' Bhandari said.

Referencing the BJP's performance in Rajasthan civic body polls, Bhandari added that voters had already passed their verdict on Congress's credibility. 'The entire country is watching that the Congress is frustrated because the Indian economy is moving forward and that UPI has been successful in India,' he said, characterising Gandhi's remarks as driven by a 'sick mindset.'

What NPCI Actually Changed

The National Payments Corporation of India (NPCI) on Tuesday confirmed it had revised the MDR framework for select UPI transactions. Under the revised rules, charges will apply to certain merchant payments above ₹2,000, while small merchants and low-value transactions will continue to benefit from a zero MDR regime. The NPCI clarified that end customers will not be charged directly, though critics argue the merchant cost will be passed on indirectly through pricing.

Why the UPI MDR Debate Matters

UPI has become the backbone of India's digital payments ecosystem, processing billions of transactions monthly. The zero-MDR policy, introduced to accelerate adoption, has long been a point of friction with payment service providers and foreign card networks, who have argued it is financially unsustainable. This revision — even if limited in scope — marks the first structural shift in that policy in years, and sets a precedent that analysts say could be expanded over time. Notably, the move arrives amid broader questions about the long-term financing model of India's public digital infrastructure.

Political Context

The exchange is part of a wider pattern of Congress-BJP confrontations over economic policy, where the opposition has increasingly sought to frame digital India initiatives as benefiting corporate interests over ordinary citizens. The BJP, in turn, has consistently positioned UPI's global success as a flagship achievement of the Modi government. Both sides are likely to continue amplifying the issue ahead of upcoming state electoral cycles.