The Congress on Wednesday stepped up its attack on the Centre after the US House of Representatives voted to advance a bill, which will eventually authories President Donald Trump to impose 100% tariffs on India as well as other countries which are purchasing oil and gas from Russia.
While criticising the government, the Opposition also slammed the newly announced Merchant Discount Rate (MDR) on select UPI transactions, linking the move to what it described as the government’s alleged accommodation of US interests.
Congress leader Pawan Khera said India was being caught between competing global powers while criticising the government’s approach towards Washington and Beijing.
“We are not playing ball with America and China. We are the ball,” he said.
‘PM Has Redefined NOTA – Narendra’s Ongoing Trump Appeasement’: Congress
Meanwhile, Congress general secretary in-charge communications Jairam Ramesh separately questioned the rationale behind introducing a 0.4% MDR on certain UPI merchant transactions. He asked whether the move was intended to give US-based card companies greater room to compete with India’s UPI ecosystem.
Also Read: US House Advances Bill Allowing Trump To Impose 100% Tariffs On India Over Russian Oil
“Here, the Modi government has given into a US demand to get rid of zero MDR and charge for UPI. The U.S. Trade Representative earlier this year criticized UPI for being free and having driven out Visa and Mastercard,” Ramesh said.
“Why 0.4% MDR? Is it because debit card MDR is also 0.4%? Is this being done to enable US card companies to compete with UPI?” he said.
‘Abki Baar Trump Sarkar’
Meanwhile, Congress president Mallikarjun Kharge also stepped up the attack on the government, linking the UPI MDR decision to broader disagreements with the US over tariffs, trade, immigration and digital payments.
Kharge alleged that the threat of tariffs of up to 100% on Indian goods reflected the failure of the government’s foreign and trade policies. He warned that sectors including pharmaceuticals, textiles, engineering goods, chemicals, auto components, gems and jewellery, electronics and technology could face significant tariff pressures.
He also criticised what he described as concessions to the US in agriculture and trade, claiming that the new framework could expose Indian farmers to greater competition from American agricultural products. Kharge further cited the government’s decision on UPI merchant charges as another example of what he called its capitulation to Washington.
“Your dear friend “Abki Baar Trump Sarkar” dictates, you capitulate, and 140 Cr Indians are left to bear the consequences! The threat of up to 100% US tariffs on Indian goods shows how your Govt’s Foreign and Trade policies have miserably failed!!” he wrote.
“Pharmaceuticals, textiles, engineering goods, chemicals, auto components, gems and jewellery, electronics and technology could face a severe tariff shock. First came 25% tariffs, then 50%, and now the threat of 100%,” Kharge said.
“Yesterday’s surrender on the MDR on UPI is another stark example of your govt’s meekness! From tariffs and trade to H1B1 immigration, visas and digital payments, the pressure from Washington keeps mounting, and you, ‘Howdy Modi ji’ keeps surrendering!” he added.
US Advances Russia Sanctions Bill
The Congress’s criticism came as the US House of Representatives moved forward with legislation that could authorise tariffs of up to 100% on countries buying Russian energy. India is among the countries that could face such tariffs under the proposed legislation. The Senate has already approved the bill.
Ramesh also cited the Trump administration’s immigration policies while arguing that India was facing pressure from Washington on multiple fronts. He referred to higher costs associated with H-1B visas and potential consequences for Indian professionals holding such visas.
He also questioned the government’s argument that MDR would make the UPI ecosystem financially sustainable.
“The PM has redefined NOTA – Narendra’s Ongoing Trump Appeasement,” Ramesh said.
What The New UPI Rule Says
Under the framework announced this week, a 0.4% MDR will apply from October 15 to specified person-to-merchant UPI payments above Rs 2,000. The charge will be capped at Rs 300 for transactions of Rs 75,000 and above.
Also Read: UPI Merchant Transactions Above ₹2,000 To Attract 0.4% MDR; Maximum Charge Capped At ₹300
The government has stressed that the change does not mean consumers will start paying a UPI transaction fee. Person-to-person payments will remain free irrespective of the amount, while payments to merchants up to Rs 2,000 will also remain outside the MDR framework.
The Finance Ministry said around 96% of merchant transactions would remain unaffected.
“Customers will not be required to pay any charge when making such payments through UPI,” the Finance Ministry said in a statement, adding, “MDR is a charge within the merchant payment ecosystem. It is not a charge on customers making UPI payments.”
The government has said the revised framework is aimed at ensuring the long-term sustainability of UPI and supporting the continued expansion of the digital payments network.
With inputs from PTI
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