MP petrol pumps to stop UPI over Rs 2,000 from October 16

Petrol pump dealers in Madhya Pradesh will stop accepting UPI payments above Rs 2,000 from October 16, protesting the new merchant discount rate (MDR) that applies to larger transactions. The Madhya Pradesh Petroleum Dealers Association said the 0.4% charge, capped at Rs 300 per transaction, would add roughly Rs 17,700 in monthly costs per fuel station on thin profit margins of around 0.5%. The association has asked the government to extend the MDR exemption already available on credit and debit card transactions to UPI payments as well.

Finance Minister Nirmala Sitharaman has stated the MDR is a charge between payment service providers, not a consumer levy, and will not be passed to users. She accused opposition parties of spreading misinformation. The National Payments Corporation of India introduced the new framework on September 15, and the government said around 96% of person-to-merchant UPI transactions will remain unaffected. Meanwhile, analysts said the charge could hit high-ticket retailers like jewellers and Nykaa, while food delivery and quick-commerce with lower average order values are largely insulated.