After ‘Vande Mataram’ Feud With Congress, Omar Backs Centre’s UPI Fee Rollout: ‘We Don’t Appreciate…’

Last Updated:September 17, 2026, 08:14 IST

Days after a feud over ‘Vande Mataram’ with the ally Congress, Jammu and Kashmir Chief Minister Omar Abdullah backed the introduction of a UPI charges on certain payments

Jammu and Kashmir Chief Minister Omar Abdullah (File photo)

Days after a feud over ‘Vande Mataram’ with the ally Congress, Jammu and Kashmir Chief Minister Omar Abdullah backed the introduction of a Merchant Discount Rate (MDR) of 0.4 per cent on certain person-to-merchant UPI payments above Rs 2,000.

Underlining that person-to-person money transfers will not be charged, Abdullah argued that “we don’t appreciate what we get for free”, according to IANS.

“Not everyone is charged. First of all, person-to-person money transfers are not charged. After that, individual consumers will not be charged unless they cross a certain ceiling limit”, he told reporters.

The National Conference (NC) leader argued that running the UPI system across the country required a lot of money.

“As far as I understand, running this UPI system is not cheap. It takes a lot of money to run it. And the truth is, we don’t properly appreciate what we get for free”.

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What is the new UPI MDR fee backed by Jammu and Kashmir Chief Minister Omar Abdullah?

Jammu and Kashmir Chief Minister Omar Abdullah backed the introduction of a Merchant Discount Rate (MDR) of 0.4 percent on certain person-to-merchant (P2M) UPI payments above Rs 2,000. He defended the move by stating that running the UPI system is expensive and that person-to-person money transfers will remain free, meaning individual consumers will not be charged unless they cross a certain ceiling limit.

What is the maximum limit for the 0.4 percent UPI MDR charge?

The 0.4 percent Merchant Discount Rate (MDR) charge on merchant UPI payments above Rs 2,000 has a maximum limit capped at Rs 300.

Which law was amended in 2026 to allow the government to levy charges on UPI payments?

The Parliament passed the Taxation and Other Laws (Amendment) Bill, 2026, which amends Section 10A of the Payment and Settlement Systems Systems Act, 2007. This amendment empowers the government to allow banks and other service providers to levy charges on payments made through UPI and other notified electronic payment modes.

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Meemansa ShekhawatSub-editor

A Journalism graduate, Meemansa Shekhawat is a sub-editor at News18. Driven by a keen interest in news, she is a passionate writer with specialisation in national and international affairs. You can re…Read More

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