- CTI opposes 0.4% MDR on UPI payments over Rs 2,000.
- Traders urged to observe "No UPI Day" on October 2.
- Petrol dealers threaten to halt UPI payments from October 15.
Swadesh Kumar, New Delhi: The Chamber of Trade and Industry (CTI) has strongly opposed the central government's decision to levy a 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000, October 15.
The traders' body has urged shopkeepers and business owners nationwide to observe a "No UPI Day" on October 2 by covering their UPI machines with black cloth and transacting in cash only.
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Financial Burden On Over 6 Crore Traders
CTI President Brijesh Goyal and other representatives said that the proposed fee will place an additional financial burden on approximately six crore small and medium business owners across the country.
Representatives stated that with shopkeepers operating on narrow profit margins, additional transactional costs could lead to a 50 per cent drop in UPI usage and reverse recent gains in digital payment adoption.
Under the proposed structure, merchants would incur charges such as Rs 12 on a Rs 3,000 transaction and Rs 200 on a Rs 50,000 payment, capped at a maximum fee of Rs 300.
Appeal To Finance Ministry
According to figures cited by CTI, while payments above Rs 2,000 account for approximately 4 per cent of total UPI transactions, they represent roughly 66 per cent of total transaction value, amounting to Rs 131 lakh crore out of Rs 314 lakh crore in FY 2025-26.
CTI has appealed to Union Finance Minister Nirmala Sitharaman to withdraw the decision and maintain zero-fee UPI services to support a transparent and digital economy.
Petrol Dealers In Mumbai, Thane, Raigad Threaten To Stop Accepting UPI Payments Above Rs 2,000
Petrol pump dealers across Mumbai, Thane, Raigad and Palghar have threatened to stop accepting UPI payments from October 15 if the proposed Merchant Discount Rate (MDR) charges are not withdrawn for fuel retailers.
The Petrol Dealers Association across these regions has approached the Reserve Bank of India (RBI), seeking a complete exemption from the new UPI charges. The dealers have warned that the additional transaction cost could put further pressure on already-tight operating margins.