BJP Rejects Opposition Claims of UPI Transaction Taxes

BJP leader Rajeev Chandrasekhar dismissed the Opposition's narrative of a so-called 'UPI tax,' labeling the claims as misinformed. During a press briefing, he maintained that the regulatory framework for digital payments is specifically designed to protect small businesses and consumers. According to the government, the vast majority of transactions, including all peer-to-peer transfers, continue to operate without any additional costs to the user.

The controversy centers on the Merchant Discount Rate policy, which the Opposition has characterized as a betrayal of the public interest. Chandrasekhar argued that even with adjustments, India’s UPI remains significantly more efficient and affordable than international payment giants like Visa. By keeping the burden off small merchants, the Centre aims to preserve India’s position as a global leader in cost-effective digital infrastructure, despite mounting political pressure to re-evaluate the system's current fee structure.