NCR traders fear new UPI charge above Rs 2,000 will reach shoppers

A jewellery shop in Gurgaon’s Sadar Bazaar works on margins of about 3-4%, its owner Amit Maheshwari said, and may have to raise making charges if a new UPI levy takes effect on October 15.

The revised framework proposes a 0.4% merchant discount rate (MDR) on specified person-to-merchant UPI payments above Rs 2,000. The charge would be capped at Rs 300 for transactions of Rs 75,000 and above. Person-to-person UPI transfers would remain free, as would merchant payments up to Rs 2,000 and payments to eligible small merchants covered by the zero-MDR framework.

Traders in Noida, Ghaziabad, Delhi and Gurgaon say the cost may be difficult to absorb where digital payments make up a large share of daily sales. Pawan Yadav, a Gurgaon restaurant owner, said his business receives Rs 30,000-35,000 a day and buys supplies worth about Rs 70,000 through UPI, creating payment costs at more than one stage.

Some traders said customers could eventually see the charge reflected in prices, while others warned that cash could regain appeal. Atul Bhargava of the New Delhi Traders Association said the effect in Connaught Place may be limited for goods sold at MRP.