- Traders assure no UPI MDR burden on customers.
- 0.4% fee on UPI transactions over Rs 2000 from Oct 15.
- CAIT clarifies no protest, supports national interest decisions.
Jagran Bureau, New Delhi: Traders across the country have assured the Finance Ministry that the burden of the Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions will not be passed on to customers.
Starting October 15, a 0.4 per cent fee will be levied on UPI transactions exceeding Rs 2,000. This development had initially sparked concern among some shopkeepers, who threatened to collect this fee from customers or observe a "No UPI Day" protest on October 2.
CAIT Issues Clarification
The Confederation of All India Traders (CAIT) has issued a clarification on this matter. CAIT General Secretary and BJP MP Praveen Khandelwal, along with National President BC Bhartia, said in a written statement to the Finance Ministry that no such protest will occur and traders fully support decisions taken in national interest.
They emphasised that charging customers MDR is illegal, as goods cannot be sold above the Maximum Retail Price (MRP).
Furthermore, Finance Ministry sources clarified that petrol pump dealers have no objection to the UPI MDR fee. Instead, their opposition is a strategic move to pressure petroleum marketing companies and the Ministry of Petroleum into raising their commission margins.
What Are MDR Charges On UPI?
Merchant Discount Rate (MDR) is a fee paid by merchants to acquiring banks and payment service providers for processing digital transactions.
The charge covers the maintenance, security, and network infrastructure required to process instant digital payments smoothly.
Small shopkeepers accepting digital payments up to Rs 1 lakh per month are exempt from this fee.