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Kochi : Kerala Gold and Silver Merchants Association (KGSMA) has rejected the proposal to delay the implementation of merchant discount rate (MDR) on UPI transactions over Rs 2,000 until after Diwali . Around 4,000 bullion and jewellery merchants took part in the protests to voice their opposition. Earlier in the day, National Payments Corporation of India announced that the proposed 0.4% MDR on person-to-merchant UPI payments above Rs 2,000 will be implemented after Diwali. The framework was originally scheduled to take effect from Oct 15.
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Imposing fees on digital transactions contradicts govt’s push for a cashless economy and imposes a financial burden on both traders and consumers,” said KGSMA general secretary S Abdul Nasar. The association demanded that the proposal to levy additional charges be scrapped completely. “Postponing the charges is not a solution. The association highlighted that digital payments have become essential for day-to-day trade. Levying additional processing fees on UPI transactions threatens to harm small and medium enterprises already operating on thin margins, while consumers who rely on digital payments would be unfairly penalised, he added. The association stressed that official assurances of delaying the charges until the festival season fall short of addressing their concerns. It reaffirmed its commitment to continuing strong agitation until the proposed UPI MDR is permanently withdrawn. Download the TOI App.
KGSMA organised statewide demonstrations on Tuesday outside central govt offices across the state to press its demands.