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The opposition follows the Union govt’s decision to introduce a 0.4% merchant discount rate (MDR) on UPI-based person-to-merchant (P2M) payments exceeding Rs 2,000. The charge has been capped at Rs 300 for transactions of Rs 75,000 and above. The only difference is that MDR is being introduced at a time when UPI transactions have deeply penetrated almost all sections of society, especially since it was widely believed that the service would remain free forever,” said Laxminarayan Rathi, vice-president of the local merchants’ body in Chhatrapati Sambhajinagar.
Nashik/ Chhatrapati Sambhajinagar : Traders’ associations in Nashik have strongly opposed the Centre’s decision to levy charges on high-value UPI transactions, while those in Chhatrapati Sambhajinagar said they have no major objections to it. “Traders are already paying higher charges for consumers using credit or debit cards. Prafulla Sancheti, president of the Nashik Grain and Grocery Wholesale Traders Association, termed the decision unfair, stating that traders should not be burdened with additional costs for accepting digital payments.
The fee, announced on Tuesday as part of a new framework for large-value transactions, marks the end of the zero-MDR regime that has been in place for nearly seven years.
We want the government to reconsider and roll back the decision,” Daga said. This additional expense will only fuel dissatisfaction among merchants,” Phalgune said. Nashik resident Bhushan Gavande said the government must ensure that merchants do not pass the additional charges on to customers.
Rahul Daga, a senior member of the Nashik Traders Association, also criticized the move and called for its swift withdrawal. “This is a wrong decision. Digital payments have become an integral part of business, and introducing charges will discourage their use. The Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) also expressed deep concern over the levy. “The government should have taken traders’ associations into confidence before introducing such a policy. Businesses are already bearing the brunt of GST and other compliance costs. Meanwhile, consumers expressed worry over how the decision might impact the adoption of digital payments.
Sunita Phalgune, vice president of MACCIA’s North Maharashtra unit, pointed out that traders were not consulted before the policy was finalized.