Retailers oppose proposed 0.4% MDR on UPI transactions above Rs 2,000

Retailers are mounting strong opposition to a proposed merchant discount rate on UPI payments above Rs 2,000. Industry associations have petitioned the finance ministry, arguing that the charge will significantly erode already thin profit margins of small businesses and threaten their survival.

The proposed 0.4% MDR is scheduled for implementation from October 15. Retailers warn that the new transaction fee will have a material adverse impact on their operations, particularly affecting smaller merchants operating on narrow margins.