"U-turn on U-turn?": Jairam Ramesh Slams Govt Over UPI MDR Delay
Congress leader Jairam Ramesh questions the government's U-turn on UPI MDR charges after the implementation was deferred until after Diwali.
Senior Congress leader Jairam Ramesh has launched a scathing attack on the central government, questioning the logic behind the sudden deferment of the Merchant Discount Rate (MDR) on specific UPI transactions. The charges, which were originally slated to kick in on October 15, have now been pushed back until after the Diwali festivities.
The controversy stems from the decision by the UPI and Services Steering Committee to delay the implementation of MDR on select Person-to-Merchant (P2M) UPI transactions. According to an official statement from the National Payments Corporation of India (NPCI), the delay was made to account for the busy festive season.
The "U-Turn" Allegation
Ramesh took to social media to highlight what he perceives as a series of contradictory moves by the administration. He pointed out that Union Finance Minister Nirmala Sitharaman had previously denied any plans to impose such charges in Parliament, claiming no framework had been finalized.
"On Aug 6, 2026, and again four days later in Parliament, the Finance Minister denied any plans to impose MDR on UPI. But on Sep 15, 2026, MDR on UPI was announced by the Modi Govt. This was a definite U-turn," Ramesh stated in his post on X.
The Congress leader further questioned the motive behind the latest postponement, asking, "Is the ground being prepared for a U-turn on the U-turn?"
Accusations of "FAST" Decision Making
The opposition leader did not stop at questioning the MDR itself. He accused the government of following a pattern of "FAST" decision-making, which he jokingly defined as "First Announce, Subsequently Think."
Ramesh provided a timeline to support his claim of rushed and inconsistent policy implementation:
- August 6: The Finance Minister stated no decision had been taken on MDR.
- August 10: The FM reiterated in Parliament that no MDR framework had been finalized.
- September 14: A notification was officially issued.
- Within 24 Hours: MDR charges were introduced via the amended Payment and Settlement Systems Act, 2007.
What is MDR and Why Does It Matter?
For those unfamiliar with the technicalities, the Merchant Discount Rate (MDR) is the fee that merchants pay to banks and payment processors for the convenience of accepting digital payments. The new charges target specific P2M UPI transactions exceeding 2,000 rupees.
The NPCI confirmed that while the charges are deferred for now, they will be implemented "immediately post Diwali" on a date that will be announced separately. This move aims to protect merchants from additional costs during the peak shopping period of the year, though the political debate over the policy's transparency continues to intensify.