Protests Erupt in Bhopal Over New MDR Levy on Digital Payments
What happened
The Central government decided to levy a 0.4 per cent Merchant Discount Rate on person-to-merchant transactions exceeding Rs 2,000, effective October 15. This charge is imposed under the Payment and Settlement Systems Act, 2007, but does not apply to UPI transactions up to Rs 2,000. In response, the Ahilya Chamber of Commerce and Industry organized a 'No UPI Day' campaign, urging customers in cities including Bhopal to make cash payments.
From indiatimes.com
Why it matters
The Ahilya Chamber of Commerce and Industry president claimed the Central government imposed the charges without inviting objections within the 30-day period mandated by the Payment and Settlement Systems Act, 2007. The levy could increase operational costs for merchants, with concerns that these costs may eventually be passed on to the general public.
From indiatimes.com
Who's involved
- central governmentThe Central government that decided to impose the Merchant Discount Rate.
- chamber of commerce and industryA federation of trade organizations that organized the 'No UPI Day' protest.
- BhopalThe location where the protests against the government policy took place.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- chamber of commerce and industrySpeculative
Members of the Ahilya Chamber of Commerce and Industry might face increased operational costs due to the new MDR levy.
- Madhya PradeshSpeculative
Merchants across Madhya Pradesh could see changes in transaction costs for person-to-merchant payments.
Keep exploring
The entities involved
-
Bhopal
metropolis and state capital in Madhya Pradesh, India
-
central government
state function