Jairam Ramesh Questions Modi Govt’s ‘U-Turn’ as UPI MDR Charges Deferred Till After Diwali

Senior Congress leader Jairam Ramesh on Tuesday questioned the Centre's decision to defer the implementation of Merchant Discount Rate (MDR) on select Unified Payments Interface (UPI) transactions until after Diwali, asking whether the move could lead to another "U-turn" by the government.

In a post on X, Ramesh pointed out that Union Finance Minister Nirmala Sitharaman had earlier denied plans to introduce MDR on UPI in Parliament, stating that no framework had been finalised.

He alleged that the Centre subsequently reversed its position and issued notifications under the amended Payment and Settlement Systems Act, 2007, introducing charges on select Person-to-Merchant (P2M) UPI transactions exceeding Rs 2,000.

"On Aug 6, 2026, and again four days later in Parliament, the Finance Minister denied any plans to impose MDR on UPI. But on Sep 15, 2026, MDR on UPI was announced by the Modi Govt. This was a definite U- turn. The widespread demand has been to roll back the MDR on UPI. Today, it has been announced that MDR on UPI - which was to come into effect from Oct 15, 2026 - has been deferred till after Diwali. Is the ground being prepared for a U-turn on the U-turn?" he speculated.

Earlier, on September 15, Ramesh had criticised the government's decision-making process, using the acronym FAST to mean "First Announce, Subsequently Think".

In another post on X, he questioned the sequence of announcements regarding the proposed MDR charges, noting that the notification was issued on September 14 and the charges were introduced within 24 hours.

"Decision Making in Modi Govt Aug 6: Hon’ble Finance Minister says “no decision has been taken on MDR”. Aug 10: FM in Parliament says “No MDR framework has yet been finalised”. Sep 14: Notification is issued.
Within 24 hrs, MDR charges introduced. Another example of Modi Govt’s FAST moves (First Announce, Subsequently Think)," Ramesh stated.

The remarks came after the UPI and Services Steering Committee decided to defer MDR implementation on select P2M UPI transactions until immediately after Diwali, with the specific date to be announced separately, according to an official statement from the National Payments Corporation of India (NPCI) on Tuesday.

The committee considered the festive season while deciding the revised implementation timeline for the charges on specified merchant transactions.

"Keeping in mind the festive season, Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions shall be implemented immediately post Diwali on a date to be notified separately," NPCI said in its statement.

MDR is a fee paid by merchants to banks and payment processors for accepting digital payments.