Rahul Gandhi Tells PM Modi To ‘Have Spine, Don’t Lie Down in Front of Donald Trump’; Demands UPI Tax Rollback (Video)

Congress MP and Leader of Opposition in the Lok Sabha Rahul Gandhi on Wednesday, September 16, demanded the withdrawal of the Centre’s new UPI Merchant Discount Rate (MDR) framework, calling it a “UPI tax” and accusing Prime Minister Narendra Modi of giving “huge amounts of money to the United States.” Gandhi made the remarks in a video posted on X and urged Modi to “have a spine” and withdraw the charge.

The remarks came amid a political row over changes to the UPI payment framework. Under the new system, a 0.4 per cent MDR applies to specified merchant transactions above INR 2,000. The government has clarified that customers will not be directly charged MDR, while the fee will apply to eligible merchants. New UPI Payment Charges 2026: What Will Remain Free and What Will Attract MDR?

Rahul Gandhi Tells PM Modi To ‘Have Spine, Don’t Lie Down in Front of Donald Trump’

Modi ji, roll back the UPI tax. Now. pic.twitter.com/IIt46zMgCG

— Rahul Gandhi (@RahulGandhi) September 16, 2026

Rahul Gandhi’s UPI Tax Attack

In his video message, Gandhi compared Prime Minister Modi with former Prime Minister Indira Gandhi before turning to the UPI framework. “Indiraji was once asked whether she leaned to the left or the right. Her response was, ‘I don't go left or right, I stand straight.’”

Taking a swipe at Modi, Rahul said, “Modiji is completely different. He is neither left nor right. He has decided to lie down straight and prostrate himself in front of Donald Trump.” Gandhi then alleged that the government's UPI policy would place a burden on Indians. New UPI Transaction Rates 2026: Check Proposed MDR Fees, Caps and Exemptions.

“He has put a tax on every single Indian person by taxing UPI and giving huge amounts of money to the United States,” he said. The Congress leader urged the Prime Minister to “stop lying down in front of the United States” and asked him to “have a spine” and withdraw what he called the “UPI tax.”

What The UPI Framework Says

The government has maintained that the new MDR framework does not impose a direct charge on UPI customers. The 0.4 per cent MDR applies to specified merchant transactions above INR 2,000, with the charge capped at INR 300 for transactions of INR 75,000 and above.

Customers will not be required to pay MDR directly. The government has also maintained that the framework is intended to support the sustainability of the UPI payment ecosystem.

Why The Issue Has Triggered A Political Row

The main point of contention is whether the MDR could indirectly affect consumers. While the government says customers will not be charged, critics have argued that merchants could potentially pass additional costs on through higher prices. Gandhi has described the framework as a tax on Indians and linked it to broader criticism of the government's approach toward the United States.

The government, however, distinguishes MDR from a tax, saying the charge is imposed on specified merchant transactions and is not collected by the government as a tax.

UPI has become a major part of India's digital payments system, allowing users to transfer money directly between bank accounts through participating apps. The latest framework therefore affects a significant part of the country's payments ecosystem, although the government says the new MDR applies only to specified transactions above the INR 2,000 threshold. The political debate is now focused on the impact of the revised framework on merchants, consumers and the broader UPI ecosystem.

(The above story first appeared on LatestLY on Sep 16, 2026 04:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).