Bahujan Samaj Party chief Mayawati criticized the Indian government's decision to introduce a 0.4% fee on UPI merchant transfers exceeding 2,000 rupees starting October 15.
Reader brief
Through the Reader lens: Bahujan Samaj Party leader Mayawati has condemned the Indian government's plan to impose a 0.4% fee on UPI merchant transactions over 2,000 rupees beginning October 15, 2026. She labeled the decision a capitalist profiteering move that increases the financial burden on citizens struggling with inflation and poverty. The Finance Ministry clarified that the Merchant Discount Rate is not a charge on consumers and that personal, small-scale UPI transactions will remain free.
What to watch next
- Whether the Indian government faces continued political pressure to roll back the UPI merchant transaction fee before October 15, 2026.
What was said4
Attributed, verbatim. Every quote is checked against the article it came from. One that does not match is not shown.
Ministry of Finance
3 quotes“For person-to-person (P2P) transactions, there will be no charges at all, irrespective of transaction value”
In the article
…will also be exempt. In some sectors, such as Railways, telecom, insurance, fuel and agriculture inputs, transactions over ₹2,000 will incur a flat MDR of ₹5. The new structure will take effect from October 15, 2026. “ For person-to-person (P2P) transactions, there will be no charges at all, irrespective of transaction value ,” the Ministry of Finance said in a release, adding, “P2P transactions constitute 37% of the total UPI transactions in volume terms and 70% in value terms.” “Charges will apply only to person-to-merchant (P2M)…
“The new MDR framework will make UPI self-sustainable, give incentives for further expansion in rural and semi-urban areas and maintain competitiveness, while ensuring that a large majority of payments remain free of charge”
In the article
…brokers, and dealers” will attract an MDR of 0.02%, capped at ₹300, the government said. This reduced rate, it explained, was aimed at encouraging retail participation in formal financial markets. ‘Self-sustainable’ “ The new MDR framework will make UPI self-sustainable, give incentives for further expansion in rural and semi-urban areas and maintain competitiveness, while ensuring that a large majority of payments remain free of charge ,” the Finance Ministry said. It added that its data analysis shows that only 4% of merchant transactions will be impacted by the MDR introduction, since most transactions fall below the ₹2,000 threshold or qualify…
“MDR is a charge within the merchant payment ecosystem. It is not a charge on customers making UPI payments.”
In the article
…everyday person-to-person transactions and small payments from any charge. "Customers will not be required to pay any charge when making such payments through UPI," the finance ministry said in a statement, adding, " MDR is a charge within the merchant payment ecosystem. It is not a charge on customers making UPI payments. " Also, individuals will continue to have "unlimited free usage, with no monthly quotas, volume restrictions or tiered caps on free UPI transactions", it said. The move drew sharp criticism from the opposition parties.…
Mayawati
1 quote“After vigorously promoting UPI digital transactions initially, the government's new arrangement to now levy fees on those transactions, prima facie, appears as a capitalist profiteering attitude involving tax recovery from the people with both hands, which has naturally resulted in unease and outrage among the public.”
In the article
…recovers tax from the people with both hands. Also Read | Govt denies foreign pressure behind UPI MDR, says charge will help Indian UPI apps In a post on X in Hindi on Friday (September 18, 2026), Ms. Mayawati said, " After vigorously promoting UPI digital transactions initially, the government's new arrangement to now levy fees on those transactions, prima facie, appears as a capitalist profiteering attitude involving tax recovery from the people with both hands, which has naturally resulted in unease and outrage among the public. " She said the public is unwilling to accept this system, which imposes an additional financial burden on them as a 'tax'. Regardless of the name given to this system, set to take effect on October 15, it will…