- Ghaziabad traders protest 0.4% MDR on UPI payments over Rs 2,000.
- Shopkeepers advise customers to carry cash for high-value purchases.
- Merchants warn of passing UPI transaction costs to consumers.
Jagran Correspondent, Ghaziabad: The central government's decision to levy a 0.4 per cent Merchant Discount Rate (MDR) on UPI payments exceeding Rs 2,000, starting October 15, has triggered widespread outrage among traders in Ghaziabad. Several shopkeepers and traders argue that while the decision claims to protect consumers from extra charges, merchants are unfairly forced to bear the financial burden.
Shopkeepers Advise Shift To Cash Payments
In response, shopkeepers and traders are asking customers to carry cash for purchases over Rs 2,000 starting October 15. Merchants warn that if customers continue paying through UPI for high-value purchases, sellers will have no choice but to pass the cost along through higher product prices. They emphasise that cash settlements remain the simplest way to avoid extra fees for both parties.
Posters Appear Across Local Markets
Discontent is visible at select commercial establishments. Shop owners in Crossing Republic have put up posters outside their stores, declaring a refusal to accept UPI payments in protest of the MDR.
Meanwhile, traders in the city's major markets, including Sitaram Bazaar, Gandhi Nagar Bazaar, and Ghantaghar, have not yet put up similar posters. Instead, they are closely monitoring the situation as the October 15 implementation deadline approaches.
"The imposition of MDR is wrong, and we oppose it. Why would a trader burden his own pocket? He will be trading in cash after the MDR is implemented," said Rajneesh Bansal, Chairman, Sitaram Bazaar.
"It's up to the customer whether they pay via cash, UPI, or card. We can't force anyone, but it's certain that if merchants are required to pay fees due to the implementation of MDR, they will have to reimburse them to the customer. This will, however, indirectly, impact the customer's pocket," said Mayank Singhal, Local Businessman.
Petrol Pump Dealers Threaten To Stop Accepting Online Payments Above Rs 2,000
Earlier, petrol pump dealers across India threatened to stop accepting UPI payments of Rs 2,000 and above and switch to cash if they are required to pay a flat Merchant Discount Rate (MDR) of Rs 5 per transaction.
Dealers said the additional charge would further squeeze their already wafer-thin margins.