The Economic Times

Retailers push back against proposed 0.4% MDR on UPI transactions above Rs 2,000, warn of hit to thin margins

Retailers are strongly opposing a proposed merchant discount rate on UPI payments. This new charge will significantly impact their already very thin net profit margins. Industry associations are petitioning the finance ministry to scrap the proposed transaction fee. They highlight that this fee will erode the survival margins of many small businesses. The proposed charge is set to be implemented from October fifteenth.