Archive · 21 Sep 2026
Mobile phone retailers seek exemption from proposed UPI charges
A group representing mobile phone shops has asked the government not to charge them fees for UPI payments.
UPI is a digital way to pay for goods and services.
The group says many small shops make only a very small profit.
It says a 0.4% fee could reduce those profits even more.
A shop handling large UPI payments could pay thousands of rupees more each month.
The retailers also say phones have become more expensive because component and memory costs have risen.
They claim sales have already fallen and expenses have increased.
They want continued access to low-cost digital payments and discussions before any fee is introduced.
The All India Mobile Retailers Association has asked the Finance Ministry to exempt small and medium retailers from any UPI Merchant Discount Rate or transaction charges.
The association represents more than 1.50 lakh mobile phone and electronics retailers across India.
AIMRA says a proposed 0.4% MDR could erode retailers’ net margins, which it estimates at 0.75% to 1.5%.
Retailers processing Rs 10 lakh to Rs 40 lakh in monthly UPI payments could face an added Rs 4,000 to Rs 16,000 in monthly costs.
The association also cited weaker sales, higher operating expenses and rising smartphone prices as reasons for policy support.
- Who
- The All India Mobile Retailers Association, representing more than 1.50 lakh mobile phone and electronics retailers.
- What
- It requested a complete exemption from any proposed UPI Merchant Discount Rate or transaction charges for small and medium retailers.
- When
- The request was made in a letter; the article also says smartphone prices have risen since November 2025 and could rise further by December 2026.
- Where
- India.
- Why
- The association says retailers operate on thin margins and that a 0.4% UPI charge would increase costs amid weaker sales, higher expenses and rising handset prices.
- Represented retailers
- More than 1.50 lakh small mobile phone and electronics retailers
- Requested exemption
- Complete exemption from UPI MDR or transaction charges for small and medium retailers
- Proposed charge cited
- 0.4% Merchant Discount Rate
- Estimated retailer margins
- About 0.75% to 1.5% net margins
- Potential monthly cost
- Rs 4,000 to Rs 16,000 for retailers processing Rs 10 lakh to Rs 40 lakh in monthly UPI transactions
- Smartphone price example
- Entry-level phones priced around Rs 10,000 in 2025 were cited as costing about Rs 17,000, with a possible rise to Rs 20,000 by December 2026
- Additional requests
- Low-cost digital payments, consultation with trade bodies and broader retail-sector policy support