1 hr ago
Madhya Pradesh Petrol Pumps Threaten UPI Restrictions Over Proposed MDR
Petrol pump owners in Madhya Pradesh are worried about a new payment charge.
They say the charge could make digital payments more expensive for their businesses.
If the charge is not withdrawn, they plan to stop accepting UPI payments above Rs 2,000 starting October 16.
About 4,700 petrol pumps could be involved.
The dealers say their profit margins are already small.
They estimate that one petrol pump could lose Rs 17,700 each month.
A traders’ group says this could discourage businesses from using digital payments.
It has asked the Union government to reconsider the proposed charge.
Madhya Pradesh fuel dealers plan to reject UPI payments above Rs 2,000 from October 16.
The restriction will proceed unless the proposed merchant discount rate is withdrawn.
The dealers’ association says around 4,700 petrol pumps could be affected.
A reported 0.4% MDR would add Rs 40 to a Rs 10,000 eligible transaction.
The Confederation of All India Traders urged the Union government to exempt fuel and business payments from MDR.
- Who
- The Madhya Pradesh Petrol Pumps Dealers Association and the Confederation of All India Traders.
- What
- Petrol dealers plan to stop accepting UPI payments above Rs 2,000 unless the proposed MDR is withdrawn.
- Where
- At petrol pumps across Madhya Pradesh.
- When
- The restriction is planned from October 16; the year was not specified.
- Why
- Dealers say the proposed MDR would add costs that their limited profit margins cannot absorb.
Key facts
- Affected state
- Madhya Pradesh
- Planned start date
- October 16
- Payment threshold
- Above Rs 2,000
- Potentially affected pumps
- Around 4,700
- Reported general MDR
- 0.4% on eligible UPI merchant transactions above Rs 2,000
- Reported fuel-payment MDR
- Flat Rs 5 on transactions above Rs 2,000
- Estimated monthly cost per pump
- Rs 17,700
Quotes
Dharmendra Sharma
Bhopal district president and Madhya Pradesh media in-charge of the Confederation of All India Traders
“Traders are already operating amid costs, competition and limited margins. An additional cost on digital payments could affect their profits and eventually discourage the use of such payments.”
telegraphindia.com
“With the new system, a petrol pump has to bear a loss of Rs 17,700 monthly. There are 4,700 fuel stations in MP. Our margin is less, so we can’t bear this extra expenditure.”
telegraphindia.com
Sources
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