UPI 0.4% Fee Row: Rahul Gandhi’s ‘Modi Tax’ Attack, BJP’s Reply & The Big Question

A proposed 0.4% merchant fee on select UPI payments above ₹2,000 has triggered a political showdown. Congress has branded it a “Modi Tax,” with Rahul Gandhi demanding a rollback and alleging US pressure. The BJP has hit back, accusing Congress of misleading people and insisting India’s UPI policy remains independent. Meanwhile, the RBI says the framework is aimed at making digital payments financially sustainable by supporting the infrastructure behind them. Retailers have warned that added costs could push some small businesses back towards cash, while fintech voices argue that the payment ecosystem needs sustainable funding. The bigger question: who should pay to keep UPI running — merchants, the government, or the system itself?