Opposition Demands Rollback of New UPI Fee, Alleges US Pressure

India's main opposition party has launched a fierce political attack on Prime Minister Narendra Modi's government over a new fee on digital payments, with Congress leader Rahul Gandhi demanding an immediate rollback and accusing the administration of surrendering to U.S. pressure. The controversy centers on a revised merchant pricing framework announced by the National Payments Corporation of India (NPCI). Under the new rules, a 0.4% Merchant Discount Rate (MDR) will apply to eligible person-to-merchant UPI transactions exceeding Rs 2,000, effective October 15, 2026. The fee is capped at Rs 300 for transactions of Rs 75,000 and above. The government has emphasized that person-to-person transfers and merchant payments up to Rs 2,000 will remain free. In a video message posted on Wednesday, Gandhi urged the Prime Minister to "have a spine" and "stop lying down in front of the United States." He alleged the new charge is a "UPI tax" that burdens every Indian to benefit American companies. "He has put a tax on every single Indian person by taxing UPI and giving a huge amount of money to the United States," Gandhi stated.