Ranchi, A trade body in Jharkhand has urged the Centre to roll back the decision to impose Merchant Discount Rate charges on UPI transactions above ₹ 2,000, an official said on Friday.
The Centre has said that a 0.4 per cent fee would be imposed on transfers worth more than ₹ 2,000 made to merchants through UPI from October 15, while explicitly ring-fencing everyday person-to-person transactions as well as small payments from any charge. He said the 0.4 per cent MDR might appear small for a single transaction but its cumulative impact can be significant for businesses that handle a large volume of digital transactions. “Currently, costs related to manpower, transportation, electricity, rent, compliance, and other operations are steadily rising. In this scenario, the recurring additional costs associated with accepting digital payments can impose an extra financial burden on business establishments,” he added. In the letter, the FJCCI president urged the Union minister to roll back the MDR charges on UPI transactions and continue the current zero-MDR regime for merchants. He also urged that a detailed assessment of the potential impact of the proposed MDR on Micro, Small, and Medium Enterprises , retail traders, and businesses with high volumes of digital transactions be conducted in consultation with industry associations. This article was generated from an automated news agency feed without modifications to text.
Federation of Jharkhand Chamber of Commerce and Industries president Tulasi Patel has written a letter to Union Finance Minister Nirmala Sitharaman, apprising her of the concerns of the trade and industry sectors after its implementation, he said. “The imposition of a 0.4 per cent MDR on UPI transactions above ₹ 2,000 could increase the operating costs of business establishments,” Patel said in the letter, according to a press statement issued by FJCCI on Thursday night. Patel said the zero-MDR regime for merchants played a significant role in the widespread adoption and acceptance of UPI across the country. “For this reason, small shopkeepers, traders, MSMEs, retailers, and service sector establishments have rapidly adopted digital payments,” the trade body president said. Retailers, wholesalers, distributors, and many businesses in the service sector operate on competitive and limited profit margins, Patel said.
