RSS affiliate opposes proposed MDR on UPI transactions above ₹2,000
Ashwani Mahajan of the Swadeshi Jagran Manch has criticized the government's proposal to impose a 0.4% Merchant Discount Rate on UPI transactions exceeding ₹2,000. He argues that the fee is unjustified, as UPI has already reduced operational costs for banks and is a point of national pride.
Why it matters
The debate highlights tensions between government revenue generation, banking sector profitability, and the preservation of India's zero-fee digital payment ecosystem.
Ashwani Mahajan, co-convener of the Swadeshi Jagran Manch (SJM), the economic wing of the Rashtriya Swayamsevak Sangh (RSS), on Wednesday (September 16, 2026) raised concerns about the government’s proposed Merchant Discount Rate (MDR) on UPI transactions above ₹2,000 , calling for the move to be reconsidered. He argued that the fee was not justified by the costs involved.
In a post on X, Mr. Mahajan said there was little reason for banks to seek an MDR on UPI, pointing out that the digital payments system had helped bring down their costs in terms of ATMs and other infrastructure. “UPI transaction fee is most unfortunate. It’s demeaning an achievement of Bharat, which has global appeal. Policymakers have failed to factor in reduced logistics costs due to UPI, making Bharat more competitive,” he said.
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