UPI MDR: Will petrol pumps stop accepting payments above ₹2,000? Nithin Kamath warns of impact on stockbrokers
The new UPI MDR framework has triggered protests from traders and industry groups. Petrol pumps in Mumbai may stop accepting UPI payments above ₹2,000 from October 15, while retailers warn the charges could push merchants toward cash and increase costs across sectors.
The new UPI merchant discount rate (MDR) framework, which imposes a 0.4% charge on transactions exceeding ₹5, has raised concerns among various industry bodies. Petrol pump dealers in Mumbai have threatened to stop accepting UPI payments above ₹2,000 from October 15 if fuel retailers are not exempt from the 0.4% MDR. The Retailers Association of India warns that the move may encourage merchants to opt for cash payments instead, particularly during the upcoming festive season when a high volume of transactions will likely surpass ₹2,000.
This development has also sparked a public-interest litigation (PIL) in the Supreme Court, arguing that the new framework lacks statutory authority, transparency, and safeguards for both consumers and merchants.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
