Not trueRahul Gandhichecked 1 Oct 2026“He alleged that the government had put a tax on “every single Indian person” by imposing charges on UPI transactions and claimed that the move would result in a large amount of money going to the United States.”
every single Indian person, 96%
What the evidence showsHide the evidence
What they said
every single Indian person
Rahul Gandhi alleged the government imposed a tax on every single Indian person by charging on UPI transactions, and claimed the move would send a large amount of money to the United States.
newindianexpress.com, checked 1 Oct 2026
What is actually true
96%
merchant UPI transactions unaffected by new MDR, PIB, Sept 2026
pib.gov.in
The Ministry of Finance said on 8 August 2026 that there would be no charges for users and that all person-to-person UPI transactions would remain free. The UPI Steering Committee fixed a 0.4% merchant discount rate on 15 September 2026 for merchant payments above ₹2,000, effective 15 October 2026. The Press Information Bureau says customers do not pay the MDR and about 96% of merchant transactions are unaffected.
- The Ministry of Finance stated categorically that consumers making payments will not face any transaction charges, and all person-to-person UPI transactions will continue to be free of charge. [4]
- The new 0.4% Merchant Discount Rate applies only to person-to-merchant UPI transactions above ₹2,000, is capped at ₹300 for transactions of ₹75,000 and above, and customers do not pay it; around 96% of merchant transactions remain unaffected. [5][7]
- Revenue from larger merchant transactions is meant to support banks, payment service providers and UPI application providers in India, and none of the sources shows any amount going to the United States. [5][7]
- The Press Information Bureau says individuals will continue to have unlimited free UPI usage with no monthly quotas, volume restrictions or tiered caps on free transactions. [5]
[4] Press Release Page | Press Information Bureau — pib.gov.in[5] Press Release Page | Press Information Bureau — pib.gov.in[7] Merchant Discount Rate (MDR) on Select UPI (P2M) Transactions — financialservices.gov.in
There is a new Merchant Discount Rate on UPI, so the claim has a kernel of truth. But the official record directly contradicts the assertion that it taxes every single Indian person: users are not charged, person-to-person payments are free, and only about 4% of merchant transactions attract the charge. The claim that a large amount of money would go to the United States is unsupported by the record; official sources describe the revenue staying with Indian payment ecosystem participants.