New Delhi [India], September 17 : Congress Lok Sabha MP Gaurav Gogoi on Thursday raised concerns over the government's UPI proposal, saying that the Parliament Standing Committee on Finance had not discussed it and that the Finance Department had not presented any specific proposal on the issue before the panel.
“The Parliament Standing Committee on Finance has not discussed the UPI tax proposal that the Modi government has recently announced. The Department of Finance did not have any specific proposal on UPI tax when they met the members of the Finance Committee,” Gogoi said in a post on X.
https://x.com/GauravGogoiAsm/status/2100440373361590619
“Questions were raised on the need for MDR but the representatives of the government did not have any specific or satisfactory answers at that point. I reiterate that the recent UPI tax policies hurt the small Indian merchants, vendors, entrepreneurs and help the major American corporations. Roll back UPI tax. Stop surrendering, PM Modi,” the post read.
Gogoi also reshared an earlier post by Congress leader Jairam Ramesh on the issue.
In the reshared post, Ramesh had raised concerns over the government's latest Taxation and Other Laws (Amendment) Bill, 2026, alleging that it removes the statutory guarantee keeping UPI transactions free and could pave the way for Merchant Discount Rate (MDR) charges.
Ramesh had also questioned the government's argument that the measure was necessary to keep the UPI ecosystem financially sustainable.
“The Modi Government’s claim that this is the only route to keep UPI financially sustainable is a lie. The RBI has the financial capacity to sustainably fund the UPI ecosystem without imposing charges on merchants or consumers. In 2025-26, the RBI transferred Rs 2.86 lakh crores to the Modi Government. It would take only a small fraction of this surplus transfer to support this critical digital public infrastructure,” Ramesh wrote in a post on X.
https://x.com/Jairam_Ramesh/status/2085298899690938725
Ramesh had further questioned whether the proposed amendment was linked to concerns raised by the US Trade Representative's 2026 report over UPI and RuPay. 
"Indeed, the real reason why this amendment is being introduced is perhaps more concerning. It follows the U.S. Trade Representative's 2026 report which criticizes UPI and RuPay for being free and accuses them of having driven out American payment platforms like Visa and MasterCard. Is the Prime Minister seeking to dilute UPI and open the digital payments sector to American businesses under pressure from his good friend Donald Trump?" the post read. 
The National Payments Corporation of India (NPCI) introduced a new Merchant Discount Rate (MDR) framework, under which UPI merchant transactions above Rs 2,000 will attract an MDR of 0.4 per cent, while consumers will continue to transact free of cost using UPI.
The revised UPI MDR framework will come into effect from October 15, 2026, and will apply only to select merchant transactions.