From UPI to Cash? Retailers Warn New MDR Could Hit Small Merchants Ahead of Festive Season

For a small fee, UPI has become stronger

UPI was introduced in 2016 with an MDR. The zero-MDR policy was adopted in 2020 to expand the adoption of digital transactions. The balanced approach in the latest shift will ensure a sustainable revenue flow to invest, while also enabling seamless digital payments for a large section of people

Small merchants may rethink accepting UPI over cash, says Retailers' body on merchant fee row

Retailers body warned that the UPI fee "could undo years of progress in digital payment adoption" among India's smallest retailers.

Small traders shrug off UPI MDR, high-value merchants fear margin hit

NPCI to levy 0.4% MDR on UPI merchant payments above Rs 2,000 from Oct 15; Ranchi traders split as vendors unaffected but high-value businesses fear margin hit.

No Rollback Of UPI Charges, Govt Says; 0.4% MDR On Payments Above Rs 2,000 To Continue

The Centre has ruled out any rollback of the new Merchant Discount Rate (MDR) framework for certain high-value UPI payments, saying the decision is aimed at making the digital payments ecosystem financially sustainable. A government official, cited by PTI, said that the decision had been taken and there was no question of reversing it. Under the new framework, a 0.4% MDR will apply to merchant transactions above Rs 2,000 from October 15, while p…

Risk Of India Returning To Cash Economy: Retailers' Body On UPI Fee

"Small merchants will now think twice about whether to accept cash or UPI," Kumar Rajagopalan, CEO of the Retailers Association of India, said.

Small retailers push back against MDR

India’s small retailers face challenges as a new 0.4% MDR fee on UPI transactions above Rs 2,000 may push merchants back to cash during the festive season, impacting digital payment adoption and formalisation efforts.