India Rejects Foreign Pressure Claims Over New UPI Fee

India's Finance Ministry on Wednesday rejected opposition claims that a new fee on certain digital payments was introduced under foreign pressure, particularly from the United States. The government firmly stated that the decision to impose a 0.4% Merchant Discount Rate on UPI transactions above Rs 2,000 was made independently to ensure the long-term sustainability of the country's digital payments infrastructure. The new fee structure, announced by the National Payments Corporation of India, is scheduled to take effect from October 15, 2026. It applies only to person-to-merchant payments exceeding Rs 2,000 and will be paid by the merchant, not the consumer. The charge is capped at Rs 300 for transactions of Rs 75,000 or more. Person-to-person transfers and the vast majority of merchant payments below Rs 2,000 will remain free, as will payments for essential services like railways and fuel, which will incur a flat Rs 5 fee above the threshold. The Finance Ministry's clarification came after opposition leaders alleged the move was driven by U.S. interests.