Sitharaman rejects claims of outside pressure over UPI fee decision

Finance Minister Nirmala Sitharaman has dismissed allegations from the Opposition that the government yielded to foreign pressure in making its decision on UPI merchant discount rates, according to The Hindu. Sitharaman described the decision as entirely professional and rejected the suggestion that outside influence had determined the government’s position. The available report does not identify the specific foreign actors or governments mentioned by the Opposition.

She also argued that the merchant discount rate, or MDR, was not a tax. Because it was not a tax, she said, the charge would not accrue to the government. Her comments focused on the nature of the fee and on the government’s decision-making process.

The source material does not provide further details about the decision, the level of the MDR, the parties affected by it or the Opposition’s wider argument. It also does not state whether the government intends to alter the existing arrangement or how the decision will affect UPI users, banks or payment service providers.