A political dispute on newly notified charges involving large value UPI merchant transactions intensified on 15 September 2026, as the Congress criticized the government for the changes. A so-called “PayPM” protest was held using Paytm-style scanner posters featuring Prime Minister Narendra Modi’s image. The exact claim that police later seized those posters could not be verified from reliable published reports.
UPI Charges Trigger Political Opposition.
The controversy follows a government notification dated 14 September 2026 about charges associated with UPI and other notified digital payment modes. Banks and payment-system providers cannot impose charges on UPI transactions up to ₹2,000. The wider framework creates an enabling mechanism for Merchant Discount Rate (MDR) charges on eligible larger merchant transactions.
Congress criticized the move on September 15, painting it as a policy shift from the previous zero-MDR framework. The party also questioned whether merchants could eventually pass on additional costs to consumers.
What exactly is the ‘PayPM’ protest?
According to the claim being circulated, Congress workers used posters designed to resemble a Paytm payment scanner, replacing the familiar branding with the slogan “PayPM” and featuring PM Modi's photograph.
The slogan seems to be a political play on the Paytm brand and is connected to Congress' criticism of the government's UPI policy.
However, the search of current news reports did not establish the location of the supposed protest, the identity of the organisers, or the police seizure of the posters. So those details should be treated as unverified unless the original video, photographs, or a police statement are provided.
Congress Calls It a Policy Shift
Congress leaders have heavily criticized the new UPI framework. According to PTI reporting carried by Rediff, Congress described the new arrangement as a “Modi tax” and argued that charges on merchants could ultimately affect consumers through higher prices.
Congress had questioned the notification on 14 September and said that it might set the stage for future UPI charges.
These are Congress' political claims, rather than independent conclusions on the consequences for consumers.
Government's Explanation
The government's position is different from the Congress interpretation. Finance Minister Nirmala Sitharaman has said MDR is for merchants and not end users and argued that such charges can help banks and fintech companies invest in infrastructure, innovation, and security.
And the government has also pointed out that the ever-increasing UPI ecosystem also requires continued investment in cybersecurity, fraud prevention, and infrastructure.
