Traders’ association says MDR won’t change consumer behaviour, UPI will continue to rule
Another shop owner said around 97% of his customers currently pay through UPI. Because consumer behaviour had changed,” he said, but after Covid, this practice stopped.
AI Image Nagpur: “Chillar” or “change”, the commonly used terms for coins and notes of smaller denominations, could return from oblivion if merchants turn to cash transactions after Merchant Discount Rate (MDR) charges on UPI transactions kick in from Oct 15. A merchant in Nagpur’s bustling Sitabuldi commercial market said sourcing change would be the biggest problem. “If suddenly those 97% shift back to cash, then facilitating change for them will be a big challenge, as it is not easy to get smaller denomination notes now,” he said.
Several shop owners have already started preparing for a possible return to cash — and the perennial hunt for change. For many, the bigger challenge is not handling cash but ensuring a steady supply of Rs10, Rs20 and Rs50 notes and coins. You could also get coins of all denominations, neatly stacked and wrapped in paper, from the bank.
“Our go-to source earlier would be the bank, from where we would get bundles of Rs10, Rs20 and Rs50 notes.
“There used to be a couple of men who collected change from beggars and gave them 0.5% extra. From shop owners they would charge 1%, but that was a long time back and we used that option only in an emergency since banks would provide a steady supply,” he said. You Can Also Check: Gold Rate in Nagpur | Silver Rate in Nagpur | Bank Holidays in Nagpur | Public Holidays in Nagpur | Petrol Price in Nagpur | Diesel Price in Nagpur | CNG Price in Nagpur | LPG Price in Nagpur Stay updated with the latest Nagpur news.
Still people are using such platforms,” CAIT president BC Bhartia said. A unique source of change was once beggars, who would hand over coins and smaller denomination notes to middlemen or shopkeepers for a nominal mark-up. The Sitabuldi merchant recalled that this was a regular practice until about a decade ago. Confederation of All India Traders (CAIT) believes UPI charges may not significantly alter consumer behaviour While traders are preparing for a possible shift towards cash. “Consumer wants convenience, even if it comes with a small fee. Online shopping platforms and food delivery apps are the perfect examples. They charge consumers under categories like platform fee, handling fee, delivery fee etc. Download the TOI App.