Bengaluru traders oppose proposed ₹5 charge on UPI payments above ₹2,000

Fuel bunk owners in Bengaluru have asked the Centre to exempt petroleum dealers from a proposed ₹5 charge on every UPI payment above ₹2,000.

The merchant discount rate, scheduled for October 15, has also drawn objections from pharmacies, restaurants and wholesale traders. Businesses say the added cost could eat into thin margins, particularly where customers use digital payments for higher-value purchases.

For fuel dealers, where sales values can quickly cross ₹2,000, the proposed fee would apply transaction by transaction. Traders across the affected sectors fear it may make UPI payments less viable for merchants even as customers increasingly use them at counters.

The proposal concerns the cost borne by merchants rather than an announced fee for customers. Petroleum dealers have sought a reprieve from the Centre ahead of the stated October 15 rollout.