New Delhi, Sept. 15 -- Sparring over the imposition of a 0.4 per cent fee on UPI payments above Rs 2,000 to merchants, the Congress on Tuesday dubbed it as "Modi tax" and alleged that a "compromised" prime minister had "surrendered" to US pressure, while the BJP described the Opposition party as a "jhooth ki dukaan".
Ending nearly six years of a fully free Unified Payments Interface (UPI) network for merchants, the government on Tuesday introduced a 0.4 per cent transaction fee on payments above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 and above, from October 15, while explicitly ring-fencing everyday person-to-person transfers from any charge.
Soon after the government notification, Leader of Opposition in the Lok Sabha Rahul Gandhi alleged that the Modi government has quietly paved the way for imposing fees on UPI, while Congress chief Mallikarjun Kharge said the Modi government's "loot" has now reached UPI.
The BJP hit back, accusing the Congress of spreading "fake news" to create panic about UPI transaction charges and derail Digital India.
BJP spokesperson Pradeep Bhandari called the Opposition party a "jhooth ki dukaan (shop of lies)" and said the government has made it absolutely clear that MDR charges will not be levied on consumers.
The ruling party noted that transfers to family and friends remain free and small vendors are protected by the exemption of Rs 1 lakh per month, while merchants pay 0.4 per cent on payments above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 and above.
Congress general secretary in-charge communications Jairam Ramesh said the government had earlier claimed on August 6 that "no decision has been taken on MDR" and on August 10 the FM said in Parliament that 'no MDR framework has yet been finalised', but on September 14 a notification was issued and within 24 hrs MDR charges were introduced.
Published by HT Digital Content Services with permission from Millennium Post.