The Union government has accused the Congress of taking a “double role” over the proposed merchant fee on UPI-based digital payments, saying the party initially supported the move but is now protesting it.

The National Payments Corporation of India (NPCI) had announced that merchants and business establishments would pay a 0.4% charge on UPI receipts above Rs 2,000. The government side said the fee would apply only to merchants, while person-to-person transfers would continue to remain free.

Congress has strongly opposed the move, alleging the Centre has yielded to pressure from the United States. In response, the government claimed that when the matter was discussed at a Parliamentary Standing Committee meeting on August 12, no Congress MP present raised objections.

According to the government, a report was shared with committee members recommending a graded revenue model to ensure the financial sustainability of the UPI infrastructure. It also said the Merchant Discount Rate (MDR) is not a tax, and questioned why Congress leaders are opposing the proposal now.

Meanwhile, Congress MPs Gaurav Gogoi and Manish Tewari have denied that they participated in the discussion on the UPI fee. The exchange has triggered a war of words between the Centre and Congress leaders over the issue.