{
  "id": 7863886,
  "title": "UPI MDR Debate: Traders Divided Over 40 Basis Point Charge On Large Digital Payments, Warn Of Cash Shift And Tax Risks",
  "url": "https://urgent.news/2026/09/16/upi-mdr-debate-traders-divided-over-40-basis-point-charge-on-large",
  "topic": "world",
  "section": "World",
  "published": "2026-09-16T19:51:45.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/mumbai/upi-mdr-debate-traders-divided-over-40-basis-point-charge-on-large-digital-payments-warn-of-cash-shift-and-tax-risks"
  },
  "original_language": "en",
  "account": "The National Payments Corporation of India (NPCI) has decided to introduce a 40-basis-point merchant discount rate (MDR) on Unified Payments Interface (UPI) merchant transactions exceeding Rs 2,000. While some industry bodies support the move, warning of potential cash payments, payment splitting, and diversion of business receipts to personal accounts, others urge reconsideration. The Confederation of All India Traders (CAIT) endorses the decision as balanced, citing costs associated with cyber security and UPI management. However, the Mumbai-based Federation of Retail Traders Welfare Association (FRTWA) urges the Union Finance Minister to reconsider the proposed MDR, warning of additional costs for businesses that could be passed onto consumers. FRTWA president Viren Shah highlights the concern that merchants might split payments to avoid the charge, and that individuals may be encouraged to make payments directly into a proprietor's or individual's personal UPI account. Petrol dealers demand an exemption for fuel retailers, while local retailers fear additional pressure on businesses already struggling with the shift towards online shopping. The FRTWA also warns of potential tax avoidance by merchants encouraging payments to personal accounts to bypass transaction charges.",
  "summary": "Mumbai: Traders are divided over the National Payments Corporation of India’s (NPCI) decision to levy a 40-basis-point merchant discount rate (MDR) on Unified Payments Interface (UPI) merchant transactions above Rs 2,000, with some industry bodies supporting the move while others warn that it could encourage cash payments, payment splitting, and diversion of business receipts to personal…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}