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Senior Congress leader Jairam Ramesh on Tuesday questioned the "u-turn" of the central government, stating that the Merchant Discount Rate (MDR) on select UPI transactions, which was scheduled to come into effect from October 15, has been deferred until after Diwali.
In an X post, Ramesh pointed out how Union Finance Minister Nirmala Sitharaman explicitly denied plans to impose MDR on UPI in Parliament earlier, stating that no framework had been finalised. Ramesh added that afterwards the Centre took a "U-turn" and issued notifications under the amended Payment and Settlement Systems Act, 2007, introducing charges on select Person-to-Merchant (P2M) UPI transactions above 2,000 rupees. "On Aug 6, 2026, and again four days later in Parliament, the Finance Minister denied any plans to impose MDR on UPI. But on Sep 15, 2026, MDR on UPI was announced by the Modi Govt. This was a definite U- turn. The widespread demand has been to roll back the MDR on UPI. Today, it has been announced that MDR on UPI - which was to come into effect from Oct 15, 2026 - has been deferred till after Diwali. Is the ground being prepared for a U-turn on the U-turn?" he speculated. https://x.com/Jairam_Ramesh/status/2109950191189344678 Earlier on September 15, Ramesh had accused the Modi government of orchestrating FAST decision-making. He said that FAST stands for 'First Announce, Subsequently Think'. In a post on X, he highlighted that MDR changes were introduced within 24 hours after the notification was issued. "Decision Making in Modi Govt Aug 6: Honble Finance Minister says no decision has been taken on MDR. Aug 10: FM in Parliament says No MDR framework has yet been finalised. Sep 14: Notification is issued. Within 24 hrs, MDR charges introduced. Another example of Modi Govts FAST moves (First Announce, Subsequently Think)," Ramesh stated. The remarks came after the UPI and Services Steering Committee decided to defer Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions after Diwali, with the exact date to be announced separately, the National Payments Corporation of India (NPCI) said in an official statement on Tuesday. The decision comes as the committee took the festive season into consideration while deciding the implementation timeline for the charges on specified merchant transactions. "Keeping in mind the festive season, Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions shall be implemented immediately post Diwali on a date to be notified separately," NPCI said in its statement. MDR is the fee paid by merchants to banks and payment processors for accepting digital payments. (ANI)
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