Rahul Gandhi posted a video on X on March 27, 2024, demanding that the Modi government scrap the newly introduced Merchant Discount Rate (MDR) on UPI transactions, calling it a hidden tax on every Indian.
The claim, framed as a “surrender” to the United States, echoes Gandhi’s earlier criticisms of Modi’s economic policies. He compared Modi’s stance to former Prime Minister Indira Gandhi’s famous reply to a question on political alignment, insisting that the current leader was “prostrating himself” in front of Donald Trump.
The RBI’s latest circular, released in January, allows banks to charge a higher MDR on certain UPI payments, a move that critics argue will hike costs for merchants and consumers alike. According to a small‑merchant association in Delhi, the new rate could add ₹3–₹5 per transaction, a figure that could translate to millions of rupees annually for daily‑use businesses.
Gandhi’s post sparked a wave of comments from opposition lawmakers, with some calling for an immediate parliamentary debate. The BJP‑led government has not yet responded publicly to the criticism, but insiders say a statement is expected in the next few days.
The debate is expected to take place in the Lok Sabha next month, where the RBI will also present a detailed justification for the MDR changes. For many small merchants, the outcome could mean a significant shift in their cash‑flow and pricing strategy.
If the RBI’s proposal stands, it could alter the UPI ecosystem, a platform that handles over ₹3.5 trillion in transactions annually. The next steps will involve scrutiny by the Ministry of Finance and a possible amendment to the RBI’s circular before implementation.