Entrepreneur Ashneer Grover on Tuesday questioned the decision to impose a merchant charge on UPI transactions above ₹2,000. He said the move could eventually affect consumers. The former BharatPe co-founder raised the issue during a television interview. He questioned the decision to charge merchants for accepting UPI payments above ₹2,000. The government has clarified that person-to-person UPI payments will remain free. The rule will apply regardless of the transaction amount. Grover said authorities should call any levy on UPI payments a “tax”. He questioned the use of terms such as “charge” and Merchant Discount Rate (MDR). In an interview with Times Now, Grover responded to the argument that only people who can “afford” the fee will pay it. He said: “Then call it tax. Why are you calling it a ‘charge’, ‘MDR’, or claiming that it won't affect the customer?". Grover then gave an example to challenge the argument. He asked whether people would agree to pay ₹500 every month for breathing simply because they could “afford” it. “Is there any logic to it?,” he asked. A video of the interaction later went viral. MDR, or Merchant Discount Rate, refers to a fee charged within the digital payment system. The government has said that MDR is not a tax. It also said that the government and NPCI do not collect this money as tax revenue.

India mein koi 5 minutes number Google kar le to doodh ka doodh paani ka paani ho jaye.

RBI surplus to Govt : ₹2.87 Lakh Crores (US$30 Bn)
Total listed bank profits : ₹4.11 Lakh Crores (US$42 Bn)
NPCI - which runs UPI pre tax ‘surplus’ : ₹ 1,888 crores (US$200 Mn)

To… https://t.co/jI1nHP0qVs

— Ashneer Grover (@Ashneer_Grover) September 15, 2026

Grover cites figures to question UPI charge

Grover later raised the issue again in a post on X. He shared several financial figures to question the need for the merchant charge. He claimed that the RBI surplus transferred to the government stood at ₹2.87 lakh crore (US$30 billion). He did not specify the period for this figure. Grover also said that listed banks reported total profits of ₹4.11 lakh crore (US$42 billion). He further cited NPCI figures. NPCI operates the UPI payment system. Grover said the organisation reported a pre-tax surplus of ₹1,888 crore (US$200 million). “So, who is facing any loss from UPI and which subsidy is the government paying on UPI?,” Grover asked. He also compared UPI with cash-based payments. He pointed to the high cost of operating ATMs and managing cash. Grover suggested reducing such costs and promoting UPI instead.

Will consumers face the impact?

The government has said the merchant charge will apply only to UPI payments above ₹2,000. It will not apply to person-to-person transactions. However, Grover rejected the claim that consumers will remain unaffected. He compared the issue with fuel prices during the interview. Grover said: "The government says we collect excise from oil companies, the consumer won't be affected. But is that the case? We pay ₹100 at the pump for a petrol that costs ₹40-50, all because of the excise and tax....End of the day who pays? Whether it is tax or any other charge, the consumer pays." The government has also said that about 96% of merchant transactions will remain unaffected. Most of these transactions fall below the ₹2,000 threshold. Others come under the zero-MDR framework for small merchants. The new merchant fee on UPI transactions above ₹2,000 will take effect from October 15.