Govt May Review Petrol Pump Dealers’ Demand For UPI MDR Exemption Ahead Of New Charges
The government is likely to examine a demand seeking exemption from Merchant Discount Rate (MDR) on certain UPI transactions, including a request from petrol pump dealers to exclude fuel outlets from the new charges. As per a report by Moneycontrol, the Department of Financial Services (DFS) may review the representation submitted by the All India Petroleum Dealers Association (AIPDA). However,…
The government is considering a request from petrol pump dealers to exempt fuel outlets from the upcoming Merchant Discount Rate (MDR) charges on UPI transactions. The All India Petroleum Dealers Association (AIPDA) has submitted a representation to the Department of Financial Services (DFS) seeking this exemption. AIPDA President Ajay Bansal wrote to Finance Minister Nirmala Sitharaman on September 16, arguing that petrol retailers operate on fixed margins, and additional payment processing costs cannot be offset by increasing income from transactions.
The review is expected before the implementation of the new UPI MDR framework on October 15, which will apply to eligible person-to-merchant UPI transactions above ₹2,000. Fuel retailers, including petrol pump dealers, are opposed to the proposed charges, claiming they could negatively affect their already tight margins. Associations in Madhya Pradesh and Punjab have threatened to stop accepting UPI payments above ₹2,000 if no relief is provided, while state-level associations have urged the government to exempt fuel retailers from the new charges.
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