Goa, Sept. 19 -- The Biju Janata Dal (BJD) has opposed 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, arguing that the government should explore alternative ways to fund the country's digital payments infrastructure.

The new charge is scheduled to come into effect from October 15. BJD Rajya Sabha MP Santrupt Misra said the move could affect merchants by reducing their profit margins and could eventually result in higher costs for consumers.

Speaking at a press conference at the Constitution Club in New Delhi, Misra said the government could have considered directly supporting the cost of maintaining the UPI network instead of introducing a charge on cert...