New UPI Charges Stir Concern Among Kashmir Traders
Traders say the merchant-paid charge could hit thin margins, as transactions above Rs 2,000 make up 4% of volumes but 67% of value, industry estimates show.
- On Friday, trade bodies in Jharkhand and Kashmir urged the Centre to reverse the planned 0.4% Merchant Discount Rate on UPI transactions exceeding Rs 2,000, effective October 15.
- FJCCI President Tulasi Patel warned the fee threatens the zero-MDR regime instrumental in widespread UPI adoption, while traders already face rising operational costs like electricity and rent.
- Industry estimates cited by KTMF President Mohammad Yaseen Khan show transactions over Rs 2,000 account for around 4 per cent of volume but about 67 per cent of transaction value.
- Although the Centre capped the fee at Rs 300 for transactions above Rs 75,000 and exempted small merchants receiving under Rs 1 lakh monthly, traders contend cumulative costs threaten narrow margins.
- Trade leaders are requesting a detailed impact assessment on Micro, Small, and Medium Enterprises before implementation, warning that new charges could discourage digital payment adoption.
15 Articles
15 Articles
Merchant fee on UPI payments leaves traders counting costs in Hyderabad
Traders in Hyderabad are worried about the new 0.4% Merchant Discount Rate. This charge applies to specified UPI person-to-merchant transactions exceeding two thousand rupees. The additional cost could significantly impact businesses operating with thin profit margins. Some owners fear this may lead to increased cash transactions and reduced UPI usage. Consumers remain uncertain if merchants will pass these new costs onto them.
Why Jharkhand Businesses Are Concerned About New UPI MDR Charges
A trade body in Jharkhand, FJCCI, has urged the Union Finance Minister to withdraw the proposed 0.4% Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000 for merchants. The body argues that this charge will significantly increase operating costs for businesses, especially MSMEs and retailers, who rely on the current zero-MDR regime for digital payments.
Uttarakhand: Dehradun Traders Oppose Proposed 0.4% MDR on UPI Payments Above Rs 2,000
Get latest articles and stories on India at LatestLY. The Doon Udyog Vyapar Mandal and other local traders’ organisations said traders are already paying income tax and GST and would not be willing to bear an additional cost on UPI transactions. India News | Uttarakhand: Dehradun Traders Oppose Proposed 0.4% MDR on UPI Payments Above Rs 2,000.
New UPI charges stir concern among Kashmir traders
Srinagar, Sep 17: The proposed Merchant Discount Rate (MDR) on certain UPI payments above Rs 2,000 has triggered concern among traders in Kashmir, who fear that the move could add to the cost of running small businesses at a time when margins are already under pressure. Under the revised framework, a 0.4 per cent MDR is set to apply from October 15 to specified person-to-merchant UPI transactions above Rs 2,000. The charge will be borne by the m…
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