New Delhi: “We may have to go back to cash” – this is the refrain at Delhi’s markets after Centre introduced a 0.4% merchant discount rate (MDR) on UPI transactions above Rs 2,000. Traders and shopkeepers said they may stop accepting digital payments for larger transactions if they have to bear the additional cost.
“We were already paying transaction charges and 18% GST. After paying taxes, 18% GST and meeting so many other business expenses, an additional transaction charge is simply unacceptable. Essential sectors such as railways, telecom and fuel will attract a flat Rs 5 fee per transaction, while capital market transactions will have a 0.02% rate.
We are already grappling with issues like freezing of bank accounts and the imposition of restrictions due to complaints regarding cyber fraud.
Some, they said, may now encourage customers to pay in cash. In such a climate, any additional increase in the cost of accepting digital payments is a cause for concern for small and medium-sized traders,” said Kamla Nagar Market Association president Nitin Gupta. Traders and shop owners in several markets, including Kalkaji, Kamla Nagar, Khan Market, Laxmi Nagar and Sadar Bazar, said the decision has created confusion over who will bear the additional cost. They said even if the charge is not directly recovered from customers, it would add to the cost of doing business and could squeeze already limited margins. At Shree Shyam Jewellers in Kalkaji’s Block A, a shopkeeper said, “There is already so much confusion. We cannot keep absorbing costs,” he said.
For businesses that have spent years shifting customers from cash to UPI, the move has come as a setback. They questioned why they should bear another transaction-related cost after paying GST and other business expenses. Now if govt charges us on UPI MDR, then we will promote cash. When govt came with the UPI payment method, we supported it. It will put another burden on us. You Can Also Check: Gold Rate in Delhi | Silver Rate in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi | Delhi AQI | Weather in Delhi | Petrol Price in Delhi | Diesel Price in Delhi | CNG Price in Delhi | LPG Price in Delhi