MDR a semantic cover-up, consumers will bear the burden, says Saamana editorial

Mumbai, Sep 19 (SocialNews.XYZ) Shiv Sena (UBT) on Saturday launched a sharp attack on the Centre over the introduction of a Merchant Discount Rate (MDR) on select UPI transactions, alleging that the move would ultimately burden consumers and benefit global payment giants.

In an editorial published in its mouthpiece Saamana, the Uddhav Thackeray-led party described the levy of a 0.4 per cent fee on UPI transactions above Rs 2,000 as a "semantic cover-up", rejecting the government's contention that the charge applies only to merchants and not directly to consumers.

The editorial pointed out that, like fuel excise duties and GST, merchants will ultimately pass these costs onto everyday buyers. It alleged that Indian digital transaction infrastructure is being handed over to global US financial giants like Visa and Mastercard. It labelled the transaction fee as an indirect "tribute" or extortion paid to strengthen the US economy at the expense of India's middle class and retail traders.

Linking the domestic policy shift to foreign relations, the Thackeray faction claimed that Prime Minister Narendra Modi has repeatedly yielded to US pressure. It cited instances such as halting oil purchases from Iran, navigating US trade tariffs, and conceding to diplomatic demands from the Trump administration as evidence of a compromised foreign policy stance.

"The decision to impose a 0.4 per cent fee on UPI transactions was taken solely to flatter U.S. fintech companies. An investigation must be conducted to uncover how many thousands of crores in brokerage Indian leaders and their children will receive daily from these companies. This implies that Indian brokers must have a share in the extortion received by the U.S. -- this is the new form of national service! For this, common citizens and small retailers of the country have been sacrificed," said the editorial.

Calling the image of Vishwaguru fragile and artificial, the editorial slammed pro-government narratives that celebrated foreign adoption of UPI in countries like Singapore, the UAE, Mauritius, and Sri Lanka, contrasting those celebrations with the reality of domestic fee hikes.

The Uddhav Thackeray-led Shiv Sena highlighted that while the government boasts of promoting a cashless, digital economy, it is systematically draining the middle and working classes through demonetization, GST implementation, inflation, and now transaction tariffs. It added that under the guise of digital transformation, thousands of crores will be extracted from citizens to serve corporate and foreign intermediaries.

Source: IANS