Starting October 15, petrol pumps across Madhya Pradesh will stop accepting Unified Payments Interface (UPI) transactions above ₹2,000, citing losses due to the newly imposed merchant discount rate (MDR).
The decision was taken unanimously at a meeting of the MP Petrol Pump Association, which represents 4,700 dealers statewide. Dealers said they will accept only cash for payments above ₹2,000, refusing to bear the 0.4% MDR introduced by the Centre.
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Association president Ajay Singh said, “Petroleum dealers across the state are opposing the central government’s new policy. A significant portion of fuel sales happens via UPI, and our fixed profit margins will be hit by this duty.”
Deep Dive
Why are petrol pump dealers in Madhya Pradesh stopping UPI payments above ₹2,000?
How will the new MDR rule impact consumers, especially in rural areas?
What are the consequences for merchants who choose not to accept UPI payments under the new MDR?
In a written statement, the association said that dealers were already paying MDR on credit card transactions. “Now, imposing this duty on UPI will only create further financial loss for us,” the note read.
While the association clarified it will not stage protests, it intends to discourage UPI payments by limiting them.
{{/usCountry}}While the association clarified it will not stage protests, it intends to discourage UPI payments by limiting them.
{{/usCountry}}Also read | Small merchants may rethink accepting UPI over cash, says Retailers' body on merchant fee row
“The move will hit hard the consumers from rural areas as they are were using only UPI for payment,” said an association member.