Government can bear cost of maintaining UPI network: BJD MP Santrupt Misra

Biju Janata Dal (BJD) MP Santrupt Misra raised concerns on Saturday (September 19, 2026) about the Centre’s decision to impose a merchant discount rate (MDR) of 0.4% on person-to-merchant UPI transactions above ₹2,000, saying various alternative avenues are available to fund and support the digital-payment system.

Mr. Misra said the government could have easily borne the cost of maintaining the UPI network.

“In 2025-2026, the RBI (Reserve Bank of India) gave a dividend of ₹2.86 lakh crore to the government. A small part of this could have been kept aside for the digital-transaction infrastructure,” the Rajya Sabha MP from Odisha said at a press conference at the Constitution Club in New Delhi.

He also highlighted that the National Payments Corporation of India (NPCI), which operates UPI, has large financial banks and platforms as its shareholders and promoters.

These banks made a profit of ₹2.5 lakh crore last year and could have contributed a small part of that amount to the digital-transaction infrastructure, Mr. Misra said.

He said introducing a 0.4% fee would force merchants to either reduce their profit margins or pass it on to consumers.

“The government says the MDR will not impact consumers. But this is a complete misunderstanding of economics,” Mr. Misra said.

The 0.4% fee on UPI payments of more than ₹2,000 made to merchants will be applicable from October 15.