📷 Image: Wikimedia Commons / Ministry of Finance of India
Politics
Sitharaman Rebukes Opposition Over UPI MDR Claims, Asserts No Consumer Burden
✍️ The Economic Times
🗓 22 Sep 2026, 12:35 PM
👁 10
Finance Minister Nirmala Sitharaman dismissed opposition allegations that UPI’s merchant discount rate (MDR) is unfair, stating that the government has taken steps to keep consumer costs low.
The opposition has recently raised concerns that the merchant discount rate (MDR) applied to Unified Payments Interface (UPI) transactions is disproportionately high and could burden consumers. In a sharp response, Finance Minister Nirmala Sitharaman dismissed these claims as misinformation, asserting that the government’s policies are designed to protect users.
Sitharaman pointed out that the Reserve Bank of India has set a cap on the MDR for UPI, and that banks are required to comply with these limits. She added that the government has been working closely with payment aggregators to ensure that any changes in rates are transparent and do not translate into higher costs for the end‑user.
The minister also highlighted recent measures such as the introduction of a lower MDR tier for small‑value transactions and the promotion of alternative payment methods that offer lower fees. She emphasized that these steps are part of a broader strategy to keep digital payments affordable.
Looking ahead, Sitharaman said the government will continue to monitor the market and engage with stakeholders to maintain a fair and competitive environment for all parties involved.
Sitharaman pointed out that the Reserve Bank of India has set a cap on the MDR for UPI, and that banks are required to comply with these limits. She added that the government has been working closely with payment aggregators to ensure that any changes in rates are transparent and do not translate into higher costs for the end‑user.
The minister also highlighted recent measures such as the introduction of a lower MDR tier for small‑value transactions and the promotion of alternative payment methods that offer lower fees. She emphasized that these steps are part of a broader strategy to keep digital payments affordable.
Looking ahead, Sitharaman said the government will continue to monitor the market and engage with stakeholders to maintain a fair and competitive environment for all parties involved.