Despite the Finance Ministry asserting that it does not expect the levy of Merchant Discount Rate (MDR) charges on UPI transactions above Rs 2,000 to shift customers to cash, several CNG and petrol pumps in Delhi and NCR have put up boards reading ‘No UPI, Only Cash’. These fuel pumps in Delhi-NCR have put up posters and boards telling customers to make payments in cash or by card. A video from a CNG pump in Greater Noida also shows a “No UPI, Cash Only” poster; at this location, the staff refused UPI payments and insisted on cash transactions. However, after the news came to light, the petrol pump employee said the CNG pump’s online payment machine had been out of order for three days.
Pump associations, trade unions oppose MDR charges
Several organisations, including the petrol pump association and trade unions, have opposed the 0.4 per cent charge on UPI payments above Rs 2,000 to merchants, and they have stated unequivocally that if the charge is imposed, boards reading “No UPI… Only Cash” will gradually appear everywhere.
The petrol pump association said this charge will only increase the burden on customers, as margins are already quite low. “Petrol pump owners will not be able to shoulder yet another financial burden, and they may be forced to cut back on UPI transactions,” the association said.
No UPI posters on shops
Traders at Delhi’s Kashmiri Gate market have put up ‘No UPI’ posters at their shops to protest the government’s decision to levy charges on UPI transactions. The traders’ protest took place on Thursday under the leadership of Brijesh Goyal, President of the Chamber of Trade and Industry (CTI).
Traders in Delhi’s wholesale markets are also opposing the charges on UPI transactions. According to the Chamber of Trade and Industry (CTI), this decision could deal a major blow to the ‘Digital India’ initiative.
No US pressure behind UPI MDR levy
Meanwhile, the Finance Ministry on Thursday dismissed allegations that US pressure influenced the decision to levy a 0.4 per cent Merchant Discount Rate (MDR) on select UPI transactions, saying the latest NPCI guidelines do not give international credit cards any advantage over RuPay, and asserted that it does not expect the levy to trigger a shift towards cash transactions.
ALSO READ:
Govt to ensure merchants absorb UPI MDR charges, not pass them to consumers: Sources
