Concerns Rise Among Mumbai Traders Over Proposed MDR Levy on UPI Payments
The latest in this situation
- The Kerala Textile & Garments Association opposes Merchant Discount Rate charges on UPI transactions, while UPI continues to boost tax collections.
- Textile and garment dealers in Ernakulam organized a protest march against the proposed 0.4% MDR on UPI transactions.
- Quantified potential annual cost of new UPI MDR for distributors.
- Retail business associations, including MCCIA, plan a 'No UPI Day' to protest the Merchant Discount Rate (MDR) levy.
- Traders in Mumbai are concerned about a new MDR policy.
How it started
What happened
Concerns are growing among small business owners and traders in Mumbai regarding a proposed new policy introducing a 0.4 per cent Merchant Discount Rate (MDR). This charge applies to eligible person-to-merchant UPI transactions exceeding Rs 2,000. The new MDR framework is scheduled to come into effect on October 15, 2026. Affected shopkeepers stated that they worry this additional merchant-side cost will impact their already rising operating expenses.
From freepressjournal.in
Why it matters
The proposed MDR introduces a new cost structure for digital transactions, prompting small business owners to consider limiting digital payments or returning to cash transactions. Business owners expressed concern that this new charge adds to existing taxes and operating costs amidst rising rents and staff salaries.
From freepressjournal.in
Who's involved
- MumbaiLocation where the concerns regarding the new MDR policy have been raised.
How it developed
Newest first. Tap a step to see who reported it.- Retail business associations, including MCCIA, plan a 'No UPI Day' to protest the Merchant Discount Rate (MDR) levy.Sub-event
Concerns among traders regarding a new MDR policy in Mumbai.1 source