Retailers oppose UPI MDR above Rs 2,000
Retailers across India are protesting a proposed 0.4% merchant discount rate (MDR) on unified payments interface (UPI) transactions exceeding ₹2,000, arguing it will harm their already thin profit margins. The All India Mobile Retailers Association (AIMRA) sent a letter to the finance ministry, citing a 40% drop in business volumes due to higher handset prices.
Mainline mobile retailers typically have net margins between 0.75% and 1.50%. The resistance stems from the Center's decision to impose the MDR on P2M UPI transactions above ₹2,000, with a cap of ₹300 for payments of ₹75,000 or more. Transactions under ₹2,000 and those from small merchants earning up to ₹1 lakh a month through UPI QR codes will remain exempt.
The South Indian Organised Retailers Association (ORA), representing over 5,500 large electronics and mobile phone retailers, estimates 20% of its ₹26,400 crore annual sales come from UPI transactions. The FMCG general trade industry body also plans to submit a representation, expressing concern that the MDR will significantly impact their net margins of 1.5-2%.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
