Archive · 21 Sep 2026
Seafood Traders Seek Zero UPI Charges to Protect Fishermen
Seafood traders in Mumbai say UPI charges could reduce fishermen’s earnings.
They want fishing to receive the same kind of low or flat charges given to some farming-related activities.
The traders say a large fish sale is not the same as a large profit.
Fishermen must pay for diesel, ice, workers, equipment, repairs and transport.
Under the cited rules, some transactions above Rs 2,000 can have a 0.4% charge.
For example, a Rs 50,000 payment could incur Rs 200 in charges.
Traders want either no charge or a flat Rs 5 charge for fisheries payments.
They also say high charges might make people use cash or cheques instead of UPI.
The group has asked the Union finance minister to change the policy.
Mumbai seafood traders want zero or concessional MDR on UPI fisheries transactions.
The Akhil Maharashtra Machhimar Kriti Samiti has sought relief from Nirmala Sitharaman.
The group says percentage-based fees ignore fishermen’s high operating costs and low margins.
Under the cited framework, some transactions above Rs 2,000 attract 0.4% MDR.
Traders warn additional digital charges could push small businesses back toward cash payments.
- Who
- Seafood traders, traditional fishermen, fisheries cooperatives, Fisheries Farmer Producer Organisations, vendors and small fisheries enterprises represented by the Akhil Maharashtra Machhimar Kriti Samiti.
- What
- They are seeking zero or concessional Merchant Discount Rate charges on UPI payments in the fisheries sector.
- Where
- Mumbai, with the representation submitted to the Central Government.
- Why
- They say percentage-based charges on high-value transactions could reduce fishermen’s already limited livelihood income because of substantial operating costs.
Fisheries Sector
Existing MDR Framework
How fisheries should be charged
Fisheries Sector
Fishing should be treated as a thin-margin livelihood sector and receive zero MDR or a flat Rs 5 charge.
Existing MDR Framework
The cited framework charges 0.4% on specified merchant transactions above Rs 2,000, while assigning flat charges to certain other sectors.
Effect on digital payments
Fisheries Sector
Traders say additional charges could hurt livelihoods and discourage small fishermen and traders from using UPI.
Existing MDR Framework
The article does not provide a government response defending the current framework or addressing the fisheries sector’s request.
Payment alternatives
Fisheries Sector
Wholesalers warn that the current threshold could lead people to use cash or cheques, reducing convenience and digital financial inclusion.
Existing MDR Framework
The article reports the existing Rs 2,000 exemption but does not state whether authorities plan to raise it.
- Demand
- Zero MDR, a flat MDR, or a higher zero-MDR threshold for fisheries transactions.
- Current charge cited
- A 0.4% MDR applies to specified merchant UPI transactions above Rs 2,000.
- Flat charge cited
- Certain essential and thin-margin sectors, including agricultural inputs, attract a flat Rs 5 MDR.
- Example transaction
- A Rs 50,000 UPI payment would attract Rs 200 at a 0.4% MDR.
- Costs affecting fishermen
- Diesel, ice, crew wages, fishing gear, boat and engine maintenance, and transportation.
- Concern
- Higher digital transaction costs could encourage cash or cheque payments.
- Government representative approached
- Union Finance Minister Nirmala Sitharaman.