FM Nirmala Sitharaman hits back at Jairam Ramesh over UPI taxation: Social media reacts, ‘When I sell my kidney…’

Finance Minister Nirmala Sitharaman hit back at Jairam Ramesh over the Congress leader’s criticism of the Taxation and Other Laws Amendment Bill. The new bill proposes amending Section 10A of the Payment Act.

This would replace fixed zero-MDR rules for UPI and RuPay. Instead, the government would gain notification powers.

Jairam Ramesh argued that it ended statutory fee-free protection for users. He warned that it could indirectly burden customers financially.

He cited RBI's ₹2.86 lakh crore surplus transfer for 2025-26. This, he claimed, could fund UPI infrastructure without charges.

“The Modi government's claim that this is the only way to keep UPI financially sustainable is entirely wrong. The Reserve Bank of India (RBI) has sufficient capacity to maintain the UPI system on a financially sustainable basis without imposing any additional fees on merchants or consumers,” the Congress leader wrote.

He also linked the change to external pressure. He referenced the US Trade Representative's 2026 report. It reportedly criticised UPI and RuPay for disadvantaging American firms.

Jairam Ramesh specifically named Visa and Mastercard as examples. He suggested Donald Trump may have influenced this decision.

“Donald Trump has publicly claimed more than 100 times that he pressured the Modi government into securing a sudden ceasefire during Operation Sindoor by threatening American tariffs. The United States has also claimed that India's gradual reduction in oil imports from Russia is a result of President Trump's directives,” the Rajya Sabha MP wrote.

“We also know that the Modi government, bowing to President Trump's bullying, accepted a trade agreement between India and the United States that was widely regarded as unfair and which particularly sacrificed the interests of our farmers and small businesses,” he added.

FM Sitharaman responds

Finance Minister Nirmala Sitharaman responded directly to these claims. She clarified that MDR would apply only to merchants. Customers, she said, would not bear any charges.

She argued this would support banks and fintech investment. This includes spending on infrastructure, innovation and security. All UPI users, she said, would ultimately benefit.

Sitharaman also noted that implementation remained undecided. The NPCI-led steering committee will decide MDR specifics. This will happen only after the bill passes.

“All this could have been discussed on the floor of the House if your party, the Indian National Congress, engages constructively in Parliament when the Bill was/is tabled. (LS/RS respectively) (sic),” she added.

Social media reaction

Social media users have reacted to FM Sitharaman’s post.

“This sets a precedent that you can tax UPI. Might as well put a 1% charge on all UPI transactions. Madam, please ensure GST is charged when I sell my kidney,” came a sarcastic reply.

One user wrote, “Indians account for the bulk of the Ecom traffic and payments made through Visa etc and global PG result in transfer of MDR to those. High time Indian UPI get MDR share.”

“So, you think merchants who will bear the cost of this won't increase the price of their products? Whose burden will fall directly on consumers? Don't you know the ripple effect it will cause?” asked another user.