UPI MDR Debate: Traders Divided Over 40 Basis Point Charge On Large Digital Payments, Warn Of Cash Shift And Tax Risks

UPI MDR Debate: Traders Divided Over 40 Basis Point Charge On Large Digital Payments, Warn Of Cash Shift And

Traders have reacted differently to NPCI’s proposed 40-basis-point MDR on UPI merchant transactions above ₹2,000. CAIT supported the move, citing digital payment costs, while FRTWA warned it could encourage payment splitting and personal UPI use. Retailers said charges may increase costs, affect accounting and push some businesses towards cash or alternate payment methods.