New Delhi: Congress MP and Lok Sabha Leader of Opposition Rahul Gandhi on Wednesday demanded an immediate rollback of the new UPI payment framework, describing the merchant discount rate (MDR) introduced on certain transactions as a “UPI tax”.

The revised framework imposes a 0.4 per cent MDR on specified merchant UPI transactions above Rs 2,000, with the fee capped at Rs 300 for transactions of Rs 75,000 and above. The government has clarified that the charge applies to merchants and not directly to customers.

In a video message posted on X, Gandhi alleged that the move would burden Indians and accused Prime Minister Narendra Modi’s government of “giving huge amounts of money to the United States”. He said, “Modi ji, roll back the UPI tax. Now.”

Gandhi also criticised the Prime Minister over the policy, claiming it reflected a surrender before the US and President Donald Trump. Referring to former Prime Minister Indira Gandhi, he said, “I don’t go left or right, I stand straight,” while contrasting it with Modi’s approach.

The Congress leader alleged that merchants could pass on the additional costs to consumers through higher prices. However, the government has maintained that ordinary users making UPI payments will not be charged MDR.

The new framework has triggered a political debate, with opposition leaders questioning the impact on digital payments and businesses, while the government has defended the move as a merchant-focused measure. Controversy comes as UPI continues to remain a widely used digital payment platform across India’s financial ecosystem and markets.