Bhubaneswar, Sep 18: Leader of Opposition and BJD president Naveen Patnaik on Friday expressed concern over the newly announced 0.4% Merchant Discount Rate (MDR) on specified UPI transactions above ₹2,000, saying the interests of the common man and small traders should be protected.

Patnaik made the remarks while responding to media queries after arriving at Biju Patnaik International Airport in Bhubaneswar. His comments came amid a political debate over the revised UPI payment framework.

The National Payments Corporation of India (NPCI) has announced that the 0.4% MDR will apply to specified person-to-merchant (P2M) transactions exceeding ₹2,000, with the new framework scheduled to take effect from October 15. The MDR is a fee paid within the payment ecosystem rather than a direct charge on consumers.

The Odisha Congress has criticised the move, with senior leader Sonali Sahoo comparing the proposed charge to the historical ‘Jizya tax’ and alleging that it could affect workers and small traders.

However, the Union Finance Ministry has clarified that person-to-person UPI transactions will remain completely free, irrespective of the amount transferred. Payments to merchants up to ₹2,000 will also remain free, while transactions covered under the zero-MDR framework for small merchants will be unaffected. The government said approximately 96% of P2M transactions will remain unaffected.

The Finance Ministry has also clarified that the MDR is neither a tax nor a government charge.

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