Ghaziabad Traders Threaten ‘No UPI’ for Payments Above Rs 2,000 Over Proposed MDR
Merchants display warning notices outside shops asking customers to carry cash as protests grow against the proposed 0.4 percent fee on higher value digital transactions.
Several traders and shopkeepers in Ghaziabad have begun displaying notices outside their establishments warning customers that UPI payments may not be accepted for purchases exceeding Rs 2,000. The movement comes in response to the proposed 0.4 percent Merchant Discount Rate (MDR) scheduled to take effect on specified person to merchant transactions above that threshold from October 15.
Traders in localities such as Vijay Nagar, Pratap Vihar, and Crossings Republic expressed concern that absorbing transaction costs on higher value purchases will squeeze already thin operating margins. While the central government clarified that the fee will be borne by merchants and capped at Rs 300 for transactions of Rs 75,000 and above, business owners argue that the financial burden will force shopkeepers to encourage cash payments or pass costs along to consumers.
Government and National Payments Corporation of India (NPCI) data indicate that over 95 percent of person to merchant UPI transactions remain under Rs 2,000 and will stay completely free of MDR charges. Authorities have also instructed banks and payment aggregators to prevent merchants from levying separate surcharge fees on customers.
Despite official assurances that everyday routine digital payments will remain unaffected, trader associations across parts of Uttar Pradesh and the National Capital Region continue to urge shopkeepers to demand cash for larger purchases until the proposed levy is reconsidered.