Gold traders to protest on Oct 15 against MDR on UPI dealings
Imposing UPI charges—on top of high capital investment, price volatility and market sluggishness—threatens the very survival of small- and medium-sized jewellery businesses
The Kerala Gold and Silver Merchants Association plans to hold a protest on October 15, seeking the removal of merchant discount rates (MDR) on UPI transactions. K.Surendran, the state president, and S. Abdul Nazar, the general secretary, expressed their concern that the imposition of UPI charges would be a "double blow" to the gold trade sector, already facing increased business costs and rising gold prices.
Despite gold prices increasing, traders do not anticipate a rise in profits due to the additional charges. These expenses, coupled with high capital investment, price volatility, and market sluggishness, pose a threat to the survival of small- and medium-sized jewelry businesses. Even seemingly minor charges can result in substantial financial burdens for high-value gold jewelry transactions.
The government, which promotes a "Digital India" and cashless transactions, should reconsider imposing further financial burdens on merchants who accept digital payments. While digital transactions ensure transparency and tax compliance, it is unjust to burden merchants with the associated costs. The association advocates for encouraging digital payments without imposing additional costs on merchants.
Profits for merchants should not solely depend on the price of gold; rather, they should be calculated fairly. Comments must be in English and written in complete sentences; they should not be abusive or personal.
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