Congress MPs backed tiered UPI revenue model in parliamentary panel: Government

Five Congress MPs, including former finance minister P Chidambaram, were present when the Parliamentary Standing Committee on Finance approved a report recommending a tiered revenue mechanism for UPI transactions on August 12, with no dissent recorded in proceedings.

The development comes as the government faces political criticism over its decision to introduce a 0.4% Merchant Discount Rate (MDR) on specified merchant UPI transactions above Rs 2,000 from October 15. Congress leader Rahul Gandhi has opposed the move, alleging it benefits US-based payment companies and lacks transparency.

The government cited the committee's recommendations while responding to Gandhi's criticism. The Standing Committee, chaired by BJP MP Bhartruhari Mahtab, highlighted concerns over the long-term financial sustainability of the UPI ecosystem, noting that government support may be insufficient to cover operational and infrastructure expenses. Person-to-person UPI payments will remain free.