No 0.5% UPI fee above ₹2,000: Amit Malviya calls Congress claim 'completely false'

BJP leader and former IT cell head Amit Malviya on Tuesday rejected the Congress' claim that the government would impose a 0.5% charge on UPI payments above ₹2,000.

Malviya said there was no government order imposing such a fee and accused the Congress of creating "fake fear" around UPI charges. "0.5% tax on UPI transactions above ₹2,000? Congress's claim is completely false," Malviya said in a post on X.

He said the ₹25 charge on a ₹5,000 payment and ₹50 on a ₹10,000 payment cited by the Congress were based on an "imaginary 0.5% rate"."There is no such government order, tax, or consumer charge."

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What The September 14 Notification Says

Malviya said the September 14 notification only clarified zero-charge protection for UPI and RuPay transactions up to ₹2,000.

"No 0.5% charge has been fixed on UPI payments above ₹2,000," he said. "Person-to-person UPI transactions are free on any amount."

He added that even if Merchant Discount Rate (MDR) is introduced in the future, it would apply to limited merchant transactions and not directly to consumers.

Malviya said the government has been providing incentives to keep UPI free and support the payment ecosystem. He cited incentives of ₹1,389 crore in FY22, ₹2,210 crore in FY23 and ₹3,631 crore in FY24.

For 2025-26, he said ₹2,196.21 crore in incentive support had been provided, while ₹2,000 crore has been budgeted for FY27.

The BJP leader said the government was discussing ways to make UPI stronger and sustainable. "There is no 0.5% tax on UPI from the public. Congress should read the facts first, then tweet," he said.

The Congress earlier today claimed that the government was preparing to levy a 0.5% charge on UPI payments above ₹2,000. "Now the government will levy a charge on UPI payments above ₹2,000," the party said on X, arguing that a ₹5,000 purchase would attract ₹25 and a ₹10,000 purchase ₹50.

Congress leader Rahul Gandhi also alleged that the government had "quietly paved the way" for fees on UPI transactions. He argued that even if MDR were imposed only on merchants, the cost could eventually be passed on to consumers through higher prices.

Congress General Secretary communications in-charge Jairam Ramesh had similarly said the September 14 notification explicitly protected only UPI transactions below ₹2,000 from charges.

The government notification, issued under the amended Payment and Settlement Systems Act, 2007, says banks and payment system providers cannot impose, directly or indirectly, any charge on a person making or receiving a RuPay debit card or UPI payment of up to ₹2,000.

The amendment to Section 10A of the law provides an enabling framework for imposing MDR on UPI and other notified electronic payment modes. The amendment was passed by Parliament during the Monsoon Session, which ended on August 13.

Following its passage, the government said the UPI and Services Steering Committee, headed by NPCI, would decide MDR rates. It said charges could help fund cybersecurity, fraud prevention, and infrastructure upgrades, while creating a self-sustaining revenue model and encouraging more companies to expand their operations.