Government can bear cost of maintaining UPI network: BJD MP Santrupt Misra
BJD MP Santrupt Misra has criticized the Indian government's decision to impose a 0.4% merchant discount rate on UPI transactions exceeding ₹2,000. He argues that the government and major banks have sufficient profits to fund the digital infrastructure without passing costs to merchants and consumers.
Why it matters
This debate highlights the tension between maintaining the financial sustainability of India's massive digital payment ecosystem and the economic impact on small merchants and consumers.
Biju Janata Dal (BJD) MP Santrupt Misra raised concerns on Saturday (September 19, 2026) about the Centre's decision to impose a merchant discount rate (MDR) of 0.4% on person-to-merchant UPI transactions above ₹2,000, saying various alternative avenues are available to fund and support the digital-payment system.
Mr. Misra said the government could have easily borne the cost of maintaining the UPI network.
"In 2025-2026, the RBI (Reserve Bank of India) gave a dividend of ₹2.86 lakh crore to the government. A small part of this could have been kept aside for the digital-transaction infrastructure," the Rajya Sabha MP from Odisha said at a press conference at the Constitution Club in New Delhi.
He also highlighted that the National Payments Corporation of India (NPCI), which operates UPI, has large financial banks and platforms as its shareholders and promoters.
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