Opposition MPs raise concerns over proposed UPI merchant payment fee
Opposition MPs have criticized the Indian government's decision to impose a 0.4% fee on UPI merchant transactions exceeding ₹2,000, labeling it an 'anti-people' move. While the government maintains that the fee is a merchant-side charge and does not affect individual users, critics argue it will negatively impact the broader economy.
Why it matters
The debate over UPI fees touches on the sustainability of India's digital payment infrastructure and the political sensitivity of costs associated with widely adopted public digital goods.
MPs, mostly belonging to the Opposition, on Wednesday (September 16, 2026) expressed concern over the government's decision to levy a fee on UPI payments above ₹2,000 to merchants, claiming that the entire population of the country would be affected due to the "anti-people" move.
Chairman of the Parliamentary Standing Committee on Finance Bhartruhari Mahtab said that some MPs raised the issue at the meeting and said that it may be taken up at the next meeting of the panel.
RSP MP N.K. Premchandran, who is a member of the committee, said that the entire population of the country would be affected by the government's decision to levy a fee on payments of above ₹2,000 to merchants. "It is a completely anti-people decision," Mr. Premchandran said.
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