UPI MDR: PCI fact-checks Kerala Congress' ₹146 claim on ₹30,924 diesel payment, says charge is ₹5
The Payments Council of India disputes Kerala Congress's claim that a 0.4% UPI merchant discount rate on fuel payments affects petrol pump operators' margins, clarifying that a flat MDR of ₹5 applies instead to transactions over ₹2,000, not a percentage-based rate.
The Kerala Congress claimed that a 0.4% Merchant Discount Rate (MDR) on fuel payments could significantly reduce margins for petrol pump operators, potentially leading to higher costs for consumers. However, the Payments Council of India (PCI) disputed this claim, stating that the calculation is incorrect for fuel transactions. PCI clarified that fuel transactions above ₹2,000 attract a flat MDR of ₹5, rather than a percentage-based charge.
For the truck filling 300 litres of diesel, the PCI's clarification states that the MDR would be ₹5, not ₹146. The Kerala Congress claimed this would reduce the pump owner's gross commission by 18.66%, but PCI argued this misconception arises from incorrectly applying the MDR rate to fuel transactions.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
