Home / Business and Economy / UPI Charges Spark Merchant Uprising!
UPI Charges Spark Merchant Uprising!
19 Sep
Summary
- Merchants protest new UPI MDR framework with charges above ₹5.
- Traders threaten to stop UPI payments above ₹2,000.
- PIL filed in Supreme Court seeking suspension of new framework.
New merchant discount rate (MDR) rules for UPI transactions have sparked widespread protests among Indian traders.
Effective from the current date, a 0.4% MDR is levied on transactions exceeding ₹5, prompting concerns about profitability for businesses operating on thin margins.
Industry associations and local merchants are voicing strong objections. Petrol pump dealers have threatened to halt UPI payments above ₹2,000 from October 15 if fuel retailers are not exempted. While fuel transactions above ₹2,000 will now incur a flat ₹5 charge, other sectors are facing the new 0.4% fee.
Retailers, including those in apparel and consumer electronics, are particularly exposed. The Clothing Manufacturers Association of India stated the timing is challenging. Some merchants have already displayed signs refusing UPI payments above ₹2,000.
Further intensifying the opposition, a public-interest litigation has been filed in the Supreme Court, arguing the new framework lacks statutory authority, transparency, and safeguards. Merchant groups are advocating for the continuation of zero-MDR UPI, suggesting government-led, broad-based cost recovery mechanisms instead of burdening merchants.
