Hyderabad: With barely 10 days left for the UPI Merchant Discount Rate (MDR) framework to come into force, many hostels and paying guest accommodations in the city have reportedly stopped accepting rent payments via UPI, and are asking their tenants to pay in cash instead.
“Right now, most hostels are running at about 70% capacity and are not making profits. So, absorbing this additional charge, even if it is ₹100 or a little more per inmate, is not going to be easy.
Tenants said managements have already informed them of their reluctance to accept rent payments via UPI as they would entail additional charges. He says it will be difficult for them as even merchants from whom they buy groceries and other material are insisting on cash payments,” said Nikhil N, who stays at a hostel in the JNTU area Those running hostels and PG accommodations said that while they are asking for rent to be paid in cash, it may not be practically possible to enforce it as tenants could delay payments. Many of us are not in a position to wait as we need to pay rent and other bills,” said V Maheedhar, who runs a hostel in Khajaguda. Members of the IT Corridor Hotels Association said they too are mulling steps to ensure the new framework does not create an additional burden on them. The solution is going to be either shifting to online payments or cash,” said Amarnath Reddy Pasam, president of the association.
“My hostel owner insists that I pay rent only in cash from here on. “The main problem is there is more supply than demand. We are asking for cash payments, but are not sure how many will follow the directions. Hostels are already running at a loss as gas prices have gone up exponentially. The same is the case with other essentials like rice. Insisting on cash only will give inmates an option to delay payments, citing one reason or another.