CJP Founder Abhijeet Dipke Slams New UPI Fees Framework
Cockroach Janta Party (CJP) Founder Abhijeet Dipke launched a harsh attack on the Union government over proposed transaction charges. He called the Merchant Discount Rate (MDR) on digital payments “outright robbery”. Dipke demanded an immediate withdrawal of these new levies.
Dipke addressed media persons in Gadchiroli, Maharashtra, on Saturday. He pointed out the contradiction in government policy regarding digital payments. He said ministers actively promoted a cashless economy right after demonetization. Dipke noted that citizens embraced digital channels, yet the government now penalizes them with indirect taxes.
Policy Shift Journey:
Demonetization Era Push ──> Widespread Public UPI Adoption ──> NPCI MDR Rollout ──> Public & Political Backlash
Dipke stressed that citizens shifted to digital transactions in good faith. Imposing charges now feels like a betrayal of trust. He urged the Finance Ministry to rollback the policy immediately to protect small businesses and consumers.
Details of the NPCI Merchant Discount Rate Structure
The National Payments Corporation of India (NPCI) introduced a updated Merchant Discount Rate structure. The policy imposes a 0.4 percent fee on Person-to-Merchant (P2M) digital transfers that exceed Rs 2,000.
Transaction Value Split:
UPI Transfers Up To Rs 2,000 ──> Zero MDR (100% Free)
UPI Transfers Above Rs 2,000 ──> 0.4% MDR (Capped At Rs 300)
NPCI capped the maximum charge at Rs 300 per single transaction. Financial regulators clarified that personal peer-to-peer (P2P) transfers remain entirely free for individual users. Government spokespersons stated that around 96 percent of routine daily merchant transactions fall below the Rs 2,000 threshold, leaving most consumers unaffected.
Political Parties Voice Concerns Over Digital Charges
Opposition leaders and civic groups raised alarms across the nation. Congress MP Rajeev Shukla criticized the decision. He reminded the public that the Finance Ministry had earlier promised zero taxes on UPI usage.
Biju Janata Dal (BJD) Rajya Sabha MP Subhashish Khuntia voiced strong apprehension regarding small traders. He noted that basic commercial purchases by small businesses often cross the Rs 2,000 mark. Imposing fees places a heavy financial burden on street vendors and retail shopkeepers.
Stakeholder Reactions:
Opposition MPs ──(Demand Rollback)──> Small Retail Traders ──(Warn Of Agitation)──> Banking Leaders ──(Defend Cost Recovery)
Congress leader Pawan Khera also targeted the ruling administration during a press conference in Indore. He claimed that small merchants cannot absorb the 0.4 percent charge continuously. Merchants will eventually pass the costs down to end consumers.
Comparing Perspectives Under the New UPI Fees Framework
The table below outlines key positions taken by different stakeholders regarding the new UPI fees framework:
| Stakeholder Group | Primary Stance on Fees | Key Argument Presented | Proposed Action |
| CJP (Abhijeet Dipke) | Opposed | Termed policy “outright robbery” after cashless push | Immediate total rollback |
| Congress Party | Opposed | Violates prior Finance Ministry promises | Withdraw fee notification |
| Small Traders Organisations | Opposed | Adds tax burden on businesses paying GST | Nationwide trade agitations |
| Banking Industry (Ex-StanChart MD) | Supportive | Digital infrastructure expansion needs revenue | Retain 0.4% MDR with cap |
| NPCI & Government | Supportive | Charges apply only to merchants, 96% transactions free | Maintain current framework |
Banking Industry Defends Digital Infrastructure Costs
Former Standard Chartered Bank Managing Director Sanjeev Mehta defended the decision. He explained that operating a national digital payment grid requires massive technology investments. Running the ecosystem completely free of charge remains unsustainable over the long term.
MDR Revenue Recycling:
0.4% Fee Collected ──> Distributed To Issuing Banks & Payment Apps ──> Finances Server Upgrades & Cyber Security
Mehta noted that MDR revenue allows fintech companies to improve platform stability. The revenue supports server upgrades, cybersecurity safeguards, and new payment features. He emphasized that the Rs 300 cap keeps costs reasonable for larger business transactions.
Small Business Owners Warn of Street Agitations
Traders’ associations across states like Uttarakhand and Madhya Pradesh expressed deep anger. Groups like the Doon Udyog Vyapar Mandal stated that merchants already pay Income Tax and GST. Adding transaction fees directly cuts into slim profit margins.
Merchant Escalation Path:
MDR Implementation ──> Profit Margin Erosion ──> Return To Cash Payments ──> Organized Trade Protests
Merchant leaders warned that shopkeepers might encourage customers to switch back to cash. Such a shift would reverse years of progress toward digital adoption. Business groups warned of nationwide street agitations if the government refuses to reconsider the rule.
Balancing Infrastructure Needs and Economic Growth
The conflict over the new UPI fees framework highlights the challenge of funding public fintech infrastructure. While banks require funding to expand network capacity, small businesses struggle with rising operational expenses.
Policy Dilemma:
Fintech Sustainability Goals ──(Requires Capital)──🆚──(Requires Zero Cost)── Small Merchant Adoption Goals
The Union government continues to insist that banks must prevent merchants from passing charges to consumers. However, traders argue that market forces make price adjustments inevitable. Policy experts urge officials to consult small business representatives to reach a balanced resolution.