Daijiworld Media Network – Lucknow
Lucknow, Sep 18: Bahujan Samaj Party (BSP) chief Mayawati has criticised the Centre’s decision to introduce a 0.4 per cent Merchant Discount Rate (MDR) on certain Unified Payments Interface (UPI) merchant transactions above Rs 2,000 from October 15.
In a post on X on Friday, Mayawati described the move as, prima facie, a “capitalist profiteering attitude” and alleged that it would place an additional financial burden on common people.
She said the government had initially promoted UPI transactions extensively but was now introducing charges on certain merchant payments. According to Mayawati, the move could increase expenses for the public, particularly amid poverty, inflation, unemployment and other challenges.
She said government policies should prioritise public welfare rather than commercial profit-making and urged the Centre to consider the difficulties faced by ordinary citizens.
The new UPI framework, announced by the government on September 15, provides for a 0.4 per cent MDR on specified person-to-merchant transactions above Rs 2,000 from October 15. The fee is to be borne by merchants and not consumers. Person-to-person transactions will remain free, while payments to merchants up to Rs 2,000 and eligible small-merchant transactions will also remain exempt.
The Finance Ministry has clarified that MDR is a charge within the merchant payment ecosystem and is not a tax or a charge collected from UPI users.