FM Sitharaman Clarifies UPI MDR; No Charge Below ₹2,000 - The Economic Times Video
Fuel station dealers say the fee will add about Rs 17,700 a month at each pump and hurt thin margins.
- On Wednesday, traders across Madhya Pradesh protested against the government's 0.4% Merchant Discount Rate on UPI transactions exceeding ₹2,000, covering QR codes with black cloth and requesting cash payments ahead of the October 15 implementation.
- Ending nearly six years of free service, the National Payments Corporation of India introduced the charge on September 15 to create a sustainable revenue framework for the digital payments ecosystem.
- Mobile sellers estimate a nearly ₹500 crore annual burden, while fuel pump dealers face potential monthly losses of ₹17,700 per station across Madhya Pradesh's 4,700 fuel outlets.
- Opposition parties, including the NCP , labeled the levy a "direct assault" on small traders, while Finance Minister Nirmala Sitharaman rejected external pressure claims, calling the decision "professional" and "ecosystem-driven."
- The Supreme Court will hear a challenge to the MDR framework on Monday, while the All India Mobile Retailers Association has scheduled a nationwide 'No UPI Day' protest for October 2.
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Proposed UPI MDR not a tax, cess or surcharge: FM
New Delhi: The proposed Merchant Discount Rate (MDR) on select high-value UPI transactions is neither a tax, cess nor a surcharge, and the collections will not accrue to the government, Finance Minister Nirmala Sitharaman said, rejecting criticism from Opposition parties. The Finance Minister said the MDR is a charge within the digital payments ecosystem and … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Poli…
Banks to monitor merchants to ensure UPI MDR is not passed on to consumers: Govt sources - The Tribune
Banks will monitor merchants to ensure that the Merchant Discount Rate (MDR) on UPI transactions is not passed on to consumers, while the Indian Banks' Association (IBA) will develop a mechanism to prevent merchants from charging customers extra for digital payments, according to government sources.
Consumer impact of UPI MDR charges limited to around 10 pc of overall value: NPCI CEO
The risk of consumers bearing the cost of UPI Merchant Discount Rate (MDR) charges is limited to around 10 per cent of the overall value on which MDR is collected, NPCI Managing Director and CEO Dilip Asbe said, adding that a majority of merchants are unlikely to pass the charges on to customers.
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