UPI Charges Above ₹2,000: Mumbai Traders React Strongly To MDR & Fear Shift To Cash, Say Customers May Bear Burden
Mumbai: The proposed introduction of a 0.4 per cent Merchant Discount Rate (MDR) on eligible UPI payments above Rs 2,000 has triggered concern among traders and small business owners in Mumbai, with several vendors at Dadar market saying they may have to limit digital payments or return to cash transactions. The new MDR framework is scheduled to come into effect from October 15, 2026. The 0.4 per…
Mumbai traders are expressing strong disapproval over the proposed 0.4% Merchant Discount Rate (MDR) on UPI payments exceeding Rs 2,000. The new charge, set to take effect from October 15, 2026, has vendors at Dadar market fearing they may need to revert to cash transactions or increase prices for customers. Shopkeepers say the additional expense will be difficult to absorb alongside rising operational costs like rents and staff salaries.
Some suggest passing the charge on to customers by adjusting prices, though others acknowledge customers rarely opt for cash payments. The government insists customers won't bear the cost, but traders remain skeptical and hopeful for a clearer understanding of how the new rule will impact businesses once implemented.
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