NEW DELHI: Jammu and Kashmir chief minister Omar Abdullah backed Centre’s decision to introduce 0.4 percent merchant discount rate on UPI payments above Rs 2,000, saying that “running a UPI system” is not cheap.While talking to reporters, Omar said that people don’t appreciate what they “get for free.””Not everyone is charged. First of all, person-to-person money transfers are not charged. After that, individual consumers will not be charged unless they cross a certain ceiling limit. As far as I understand, running this UPI system is not cheap. It takes a lot of money to run it. And the truth is, we don’t properly appreciate what we get for free,” J&K CM said.”The government should ensure that the general public is not charged these fees. If a company is charged, I have no objection because companies make good money through UPI anyway,” he added.This comes after the opposition raised concerns over the rollout of UPI charges, alleging that the cost would ultimately be borne by common citizens.Earlier on Wednesday, leader of opposition in Lok Sabha Rahul Gandhi targeted the centre and accused Prime Minister Narendra Modi of putting a on every single person by “taxing UPI”.“Modiji has a completely diff concept, he’s neither left or right he has decided to completely lie down straight and in front of Donald Trump. He’s put a tax on every single Indian person by taxing UPI and giving huge amount op money to the United States,” the former Congress president added.Join conversationView All Comments →Share your thoughts in the commentsInsightfulAgreeDisagreeSkepticalConcerningPromisingWorth ReadingBig DevelopmentPost CommentBe respectful · TOI community guidelinesThe new MDR will take effect from October 15. However, UPI payments between individuals, including transfers made to friends, will not be charged, according to the Centre.Responding to the critics and concerns over the new framework, the Union finance ministry said banks were asked to ensure merchants do not pass MDR charges on to customers. “UPI application providers are expressly prohibited from imposing platform fees or hidden charges”.Get the latest India News and Live updates. Download the TOI app.About the AuthorRohitashwa RanjanRohitashwa Ranjan is a digital journalist with The Times of India, where he decodes Indian politics as a carefully staged production with scripts, subtext and everything behind. His stories track elections, party dynamics and the things that often are buried beneath the headlines. When not parsing vote shares or alliances, he is usually reading between the lines, where the real story tends to reside.Read MoreEnd of ArticleFollow Us On Social MediaVideos‘9/11 Masterminds Were Not Hiding In Caves’: India Targets Pakistan At UNSC, Flags Afghan Crisis‘Who Will Teach?’: Abhijeet Dipke Flags Teacher Shortage, School Gaps In Tribal AreasUPI MDR Row: Government Rules Out Rollback, 0.4% Merchant Charge Above Rs 2,000 From October 15Supreme Court Sets Priorities For CJP Protest Probe, Orders Witness Protection And ConfidentialityMathura SP Leader Rajan Rizvi Booked Over Alleged WhatsApp Messages to Woman‘Unacceptable’: India Summons Islamabad Envoy As Pakistan’s Ship Collides With Indian Naval UnitGurugram Hit-and-Run: Sia Says ‘Arrest Is Not Enough’, Demands Strict Action‘Iron Lady’ Sanjukta Parashar Becomes First Woman To Head CRPF’s Elite CoBRA Commando UnitIndia, US Begin Yudh Abhyas 2026 With 1,200 Troops In Uttarakhand, Focus On High-Altitude WarfareBengal Govt Transfers IPS Officer Bushra Bano After ‘Assalam Aleikum’ Video Row123Hot PicksDean Ambrose Net WorthNHL Training CampStock Market TodayRajasthan Election ResultCrude oil price todayKVS NVS Tier 2 resultBank of Baroda LBO recruitmentPunjab Lecturer Cadre admit cardUPI transactionsTop TrendingDisha Salian CaseUmar KhalidGuwahati Murder CaseSupreme CourtLebron JamesStephanie VaquerGurgaon Hit and RunRajasthan Election ResultUS Iran WarGuwahati Murder Case
NEW DELHI: Jammu and Kashmir chief minister Omar Abdullah backed Centre’s decision to introduce 0.4 percent merchant discount rate on UPI payments above Rs 2,000, saying that “running a UPI system” is not cheap.While talking to reporters, Omar said that people don’t appreciate what they “get for free.”“Not everyone is charged. First of all, person-to-person money transfers are not charged. After that, individual consumers will not be charged unless they cross a certain ceiling limit. As far as I understand, running this UPI system is not cheap. It takes a lot of money to run it. And the truth is, we don’t properly appreciate what we get for free,” J&K CM said.“The government should ensure that the general public is not charged these fees. If a company is charged, I have no objection because companies make good money through UPI anyway,” he added.This comes after the opposition raised concerns over the rollout of UPI charges, alleging that the cost would ultimately be borne by common citizens.Earlier on Wednesday, leader of opposition in Lok Sabha Rahul Gandhi targeted the centre and accused Prime Minister Narendra Modi of putting a on every single person by “taxing UPI”.“Modiji has a completely diff concept, he’s neither left or right he has decided to completely lie down straight and in front of Donald Trump. He’s put a tax on every single Indian person by taxing UPI and giving huge amount op money to the United States,” the former Congress president added.
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The new MDR will take effect from October 15. However, UPI payments between individuals, including transfers made to friends, will not be charged, according to the Centre.Responding to the critics and concerns over the new framework, the Union finance ministry said banks were asked to ensure merchants do not pass MDR charges on to customers. “UPI application providers are expressly prohibited from imposing platform fees or hidden charges”.
