New Delhi: The Congress on Thursday attacked the government over the Taxation and Other Laws (Amendment) Bill, asking whether Prime Minister Narendra Modi is seeking to dilute UPI and open the digital payments sector to American businesses "under pressure" from his "good friend Donald Trump".
Congress general secretary Jairam Ramesh said the Modi government's latest bill removes the statutory guarantee that keeps UPI transactions free.
It opens the door to Merchant Discount Rate (MDR) charges, which can easily be expanded to all payments in the future, Ramesh said on X.
The cost will inevitably be borne by ordinary people who will now have to pay to use UPI transactions, he said.
"The Modi Government's claim that this is the only route to keep UPI financially sustainable is a lie. The RBI has the financial capacity to sustainably fund the UPI ecosystem without imposing charges on merchants or consumers," Ramesh said.
In 2025-26, the RBI transferred Rs 2.86 lakh crore to the Modi government, he said.
It would take only a small fraction of this surplus transfer to support this critical digital public infrastructure, Ramesh said.
"Indeed, the real reason why this amendment is being introduced is perhaps more concerning. It follows the U.S. Trade Representative's 2026 report which criticizes UPI and RuPay for being free and accuses them of having driven out American payment platforms like Visa and MasterCard," Rameh said.
"Is the Prime Minister seeking to dilute UPI and open the digital payments sector to American businesses under pressure from his good friend (US President) Donald Trump," the Congress general secretary asked.
It wouldn't be the first time, he added.
