Jaipur, Sep 16: Former Rajasthan chief minister Ashok Gehlot on Wednesday criticised the Centre over the new Merchant Discount Rate (MDR) on certain UPI payments, saying the government is working to exploit the poor to fill the pockets of the rich.
Under the new framework, a 0.4 per cent MDR will apply to person-to-merchant UPI transactions above Rs 2,000 from October 15, with the charge capped at Rs 300 for transactions of Rs 75,000 and above. The charge will be borne by merchants, while person-to-person transactions will remain free.
“Such steps repeatedly prove that this government is working to exploit the poor, middle class and small traders and fill the pockets of the rich,” he said.
Gehlot alleged that the Narendra Modi government, which he claimed had waived loans worth thousands of crores for wealthy businessmen, was now imposing a charge of up to 0.4 per cent on UPI transactions above Rs 2,000.
“The biggest impact of this will be on small shopkeepers and traders,” he said in a statement.
The former chief minister also expressed apprehension that merchants could eventually pass the additional cost on to customers.
The government, however, has said the MDR is a merchant-side charge and customers will not have to pay it. Banks have also been advised to ensure that merchants do not pass the charge on to customers.
The new framework provides exemptions or different rates for certain categories. Transactions above Rs 2,000 in essential and thin-margin sectors such as railways, telecommunications, insurance, fuel and agricultural inputs will attract a flat Rs 5 MDR, while small merchants receiving up to Rs 1 lakh a month through UPI QR codes will not face the levy. (PTI)
