✎ Government's 0.4% fee on UPI merchant payments >Rs 2000 ends free era, opposed by MPs but P2P remains free.
Relevance for Banking, SSC & RBI Grade B exams: Polity
Opposition MPs in the Parliamentary Standing Committee on Finance have raised strong objections to the government’s proposal to impose a 0.4% fee on UPI merchant transactions exceeding ₹2,000, effective from October 15, 2026. Terming the move as “anti-people,” RSP MP NK Premchandran argued that it would disproportionately impact the entire population, despite the finance ministry clarifying that customer-to-customer transactions and small payments remain free. The committee, chaired by Bhartruhari Mahtab, noted that the issue may be discussed further in subsequent meetings, reflecting broader concerns over the potential financial burden on consumers and the digital payments ecosystem.
For banking aspirants, this development highlights the intersection of digital governance and public policy, a recurring theme in exams like IBPS PO, SBI Clerk, and RBI Grade B. The imposition of Merchant Discount Rate (MDR) on UPI transactions could influence the adoption of digital payments, a sector crucial for financial inclusion and fintech innovation. SSC aspirants should note how parliamentary debates on economic policies often reflect socio-economic priorities, with opposition voices shaping legislative scrutiny. The episode also underscores the government’s role in balancing revenue generation with inclusive digital transformation, a key analytical dimension for RBI Grade B’s economic awareness section.
Source: orissapost.com
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