PIONEER EDGE NEWS SERVICE/Dehradun
Shopkeepers and customers in Dehradun are apprehensive of the proposed charges in digital payments through UPI from October 15. While merchants are officially barred from directly passing Merchant Discount Rate (MDR) or UPI charges on to customers, local consumers said that they could still feel the impact indirectly if businesses adjust prices or change how they accept larger digital payments.
“Even if the rules say customers cannot be charged separately, businesses will have to bear the cost somehow. We already see some merchants adding charges when customers pay by Mastercard or other cards,” a customer Satakshi Kanyal said.
Another customer Jyoti Gaur said that the impact could be more noticeable at petrol pumps and for other essential services. “If I am paying for fuel through UPI and there is a separate fee involved, even if the pump cannot directly charge me for it, there could be changes in prices or payment practices. So customers may be affected in one way or another,” she added.
For shopkeepers, the proposed charges could add to operating costs, particularly for businesses receiving frequent high-value UPI payments. “We cannot directly recover the MDR from customers, but if the cost keeps adding up, it will affect our margins,” Suraj Kumar said.
Another shopkeeper Uday Gupta said that the impact would depend on how much business is conducted through large UPI transactions. “For small payments, there should not be much difference. But for bigger transactions, the charges can become an additional business expense,” he said.
Under the proposed structure, most UPI payments of up to Rs 2,000 will remain free. Small merchants receiving up to Rs one lakh a month through UPI will also remain exempt. Eligible merchant transactions above Rs 2,000 will attract an MDR of 0.4 per cent, capped at Rs 300 per transaction. However, fuel, railway, insurance, telecom and some other essential-service payments above Rs 2,000 will attract a flat Rs 5 MDR. Payments for stocks, mutual funds and broker-related services will attract 0.02 per cent, capped at Rs 300.
The government said that the MDR cannot be directly passed on to customers, leaving merchants to absorb the applicable charges.
