No foreign influence in UPI fee: Govt clarifies amid Opposition outcry over ‘US pressure’

The finance ministry defended the move, stating UPI transactions below ₹2,000 will remain free. Critics argue this is a 'new Modi tax' on the public.

The Union finance ministry on Wednesday clarified that no foreign influence was behind the decision to impose a 0.4% Merchant Discount Rate (MDR) on UPI transactions above ₹2,000 amid mounting political controversy over the decision.

The clarification came in response to allegations by Congress leader Rahul Gandhi and other opposition leaders who said that the government succumbed to US pressure in making the decision. HT learnt that the changes to the UPI regime were also mentioned in the Cabinet meeting on Wednesday.

“Some claims suggest the change is due to foreign influence. This is false. India’s UPI policy decisions are made independently, with the clear goal of building a self-sustaining, inclusive, and affordable digital payments ecosystem,” the finance ministry said in a post on X.