New Delhi, August 6: Union Finance Minister Nirmala Sitharaman responded on Thursday to senior Congress leader Jairam Ramesh’s criticism of the Taxation and Other Laws (Amendment) Bill, 2026. She urged him to refrain from spreading ‘rumors’ regarding proposed changes related to UPI transactions.
In addressing Ramesh’s allegations, Minister Sitharaman clarified that the Merchant Discount Rate (MDR) applies only to merchants, not to end-users or customers.
She emphasized that this initiative would encourage banks and fintech companies to invest more in infrastructure, innovation, and security, ultimately benefiting all UPI users.
Sitharaman specifically addressed Ramesh, stating that before spreading rumors, he should consider that the MDR applies solely to merchants and not to end-users or customers. This investment would enhance infrastructure, innovation, and security, allowing all UPI users to reap the benefits.
The Finance Minister also criticized the Congress party for raising the issue outside Parliament. She noted that if the party had constructively engaged during the introduction of the bill in both the Lok Sabha and Rajya Sabha, a discussion could have occurred in the House.
Sitharaman further stated that if Ramesh’s party had participated constructively during the bill’s introduction, all these issues could have been discussed in Parliament.
Earlier, Jairam Ramesh had alleged that the proposed amendments would remove the statutory guarantee that UPI transactions remain fee-free, paving the way for the imposition of MDR on digital payments in the future.
He dismissed the government’s argument that implementing MDR is necessary for making UPI economically sustainable. Ramesh contended that the Reserve Bank of India has sufficient financial resources to support the country’s digital payment infrastructure without imposing additional burdens on merchants or consumers. He cited the ₹2.86 lakh crore surplus transferred to the Centre by the RBI in 2025-26 as evidence.
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