Naveen Patnaik Targets Govt Over UPI Charges

Bhubaneswar, Sept 18: Biju Janata Dal (BJD) President and Leader of Opposition Naveen Patnaik has strongly criticised the Union Government’s new UPI transaction rules, warning that they could burden small traders and the common man.

Returning to Odisha after a 10‑day stay in Delhi, Patnaik was welcomed by thousands of party workers and senior leaders in Bhubaneswar.

Patnaik emphasised that while digital payments are vital for financial inclusion, the government must ensure that street vendors, small shopkeepers, and low‑income users are not penalised.

He pointed out that the new Merchant Discount Rate (MDR) charges on transactions above ₹2,000 could discourage small businesses from adopting UPI.

According to the guidelines, payments up to ₹2,000 remain free for merchants, while transactions above that threshold attract a 0.4% MDR capped at ₹300.

Sector‑specific charges of ₹5 apply to railways, fuel, insurance, and telecom transactions.

Peer‑to‑peer transfers remain free, and small vendors with monthly collections under ₹1 lakh are exempt.

Importantly, merchants are barred from passing MDR charges to customers, and UPI apps cannot levy hidden fees.

Patnaik’s remarks highlight growing political pressure on the government to safeguard small traders amid India’s rapid digital payment expansion.