UPI Gets New 0.4% MDR: ‘Modi Tax’ Row Erupts Between Congress And BJP

UPI has become the latest political flashpoint after a new Merchant Discount Rate (MDR) framework was announced. From October 15, a 0.4% MDR will apply to specified UPI person-to-merchant payments above ₹2,000, capped at ₹300 per transaction. Person-to-person transfers and payments up to ₹2,000 will remain free, while the government says around 96% of merchant transactions will remain unaffected. The Congress has dubbed the move “Modi Tax” and criticised the government, while the BJP has accused the opposition of spreading misinformation. The key question now: will merchants absorb the cost, or could some of it eventually reach consumers?