Finance Minister clarifies UPI fees levy on shopkeepers not customers:Sitharaman slams Congress’ Jairam Ramesh for spreading false rumours

Finance Minister Nirmala Sitharaman has said the Merchant Discount Rate (UPI fees) on digital transactions applies to merchants like shopkeepers and not to customers, and the MDR charge would support banks and fintech to invest more on infrastructure and security. Hitting out at Congress leader Jairam Ramesh over his remark that ordinary people may have to pay more for using UPI, Sitharaman, in a post on X, said the UPI and Services Steering Committee headed by NPCI is yet to decide on the MDR, which would happen only after Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026.
What’s in Taxation and Other Laws (Amendment) Bill, 2026? Through the bill, the government has proposed that the central government can decide, via a notification, which electronic payment modes or transactions would remain free. What Congress’ Jairam Ramesh said? Ramesh, in a post on X, alleged that the burden of MDR will fall on ordinary people, and the government’s claim that this is the only way to keep UPI financial sustainable is “entirely wrong”. Don’t spread false news: Sitharaman to Jairam_Ramesh Replying to Ramesh, Sitharaman said, “Before spreading a canard, @Jairam_Ramesh ji, please consider this: Merchant Discount Rate (MDR) applies only on the merchants and not on the end users/customers. It will support the Banks Fintech to invest more on infrastructure, innovation security. All users of UPI will reap the benefits of this investment.” Sitharaman also said that a committee will decide on the MDR only after Parliament passes the Taxation and other laws (amendment) Bill. We were open to debate Bill in Parliament says FM Referring to the opposition protest in Parliament since the beginning of the Monsoon session on July 20, which has disrupted the proceedings of both the Lok Sabha and Rajya Sabha, Sitharaman said the bill “could have been discussed on the floor of the House if your party @INCIndia engages constructively in Parliament when the Bill was/is tabled. (LS/RS respectively)”.