BJD protests UPI changes, says Centre should fund digital payments
The Biju Janata Dal (BJD) party is opposing the government's decision to impose a 0.4% merchant discount rate on UPI transactions over Rs 2,000. The party argues that the government should fund digital infrastructure using RBI dividends rather than burdening merchants and consumers.
Why it matters
The debate highlights the tension between maintaining digital payment infrastructure and the economic impact of transaction fees on small businesses.
The Biju Janata Dal (BJD) on Saturday rejected the Centre's decision to impose a 0.4 per cent merchant discount rate (MDR) on person-to-merchant UPI transactions above Rs 2,000, with Rajya Sabha MP Santrupt Misra saying the government should explore other ways to fund the digital-payment infrastructure.The charge will come into effect from October 15 and, according to Misra, could either cut merchants' profit margins or eventually be passed on to consumers.Misra said the government could have borne the cost of maintaining the UPI network instead of introducing the charge."In 2025-2026, the RBI (Reserve Bank of India) gave a dividend of Rs 2.86 lakh crore to the government.
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