Last Updated on September 16, 2026 3:40 pm by INDIAN AWAAZ
Staff Reporter / New Delhi
The Communist Party of India (CPI) has strongly opposed the government’s move to impose charges on Unified Payments Interface (UPI) transactions, calling it an “anti-people decision” taken under US pressure.
In a statement issued by its National Secretariat, CPI said that while the government claims consumers will not be directly charged, merchants inevitably pass on such costs to buyers. The party argued that UPI was designed as public digital infrastructure to provide simple, low-cost, interoperable payments, and turning it into a fee-generating mechanism is unjustified.
CPI highlighted that the National Payments Corporation of India (NPCI) is already a cash-rich institution with substantial reserves and tax contributions, making additional charges unnecessary. The party linked the move to objections raised by the US Trade Representative, who has described India’s zero-MDR framework as a trade barrier that disadvantages American payment companies like Visa and Mastercard.
According to CPI, transactions above ₹2,000 – which account for nearly 65% of UPI merchant transaction value – are now being targeted for charges. The party accused the Modi government of “caving in to US pressure” instead of defending India’s digital sovereignty.
The statement also criticized the government for allowing foreign corporations such as PhonePe (Walmart-owned) and Google Pay (Alphabet-owned) to dominate nearly 80% of UPI transactions. CPI argued that instead of burdening merchants and consumers, the government should make these companies pay for their extensive use of public infrastructure.
Calling UPI a symbol of “Digital India,” CPI urged the government to withdraw the decision and keep the platform free, warning that surrendering to foreign corporate interests undermines India’s autonomy in digital payments.