Archive · 19 Sep 2026
Jharkhand Trade Body Seeks Rollback of UPI Charges
A trade group in Jharkhand is asking the government not to add a fee to some UPI payments.
The fee would be called a Merchant Discount Rate, or MDR.
It would be 0.4 per cent on merchant payments above Rs 2,000.
The Centre said the fee would begin on October 15.
It also said person-to-person payments and small payments would not be charged.
The trade group says the fee could make it more expensive for businesses to operate.
It says free UPI payments helped many small shops and other businesses start accepting digital payments.
The group has asked the finance minister to reverse the decision.
The Federation of Jharkhand Chamber of Commerce and Industries urged the Centre to withdraw planned UPI charges on merchant transactions above Rs 2,000.
The proposed Merchant Discount Rate is 0.4 per cent and is scheduled to apply from October 15.
FJCCI president Tulasi Patel wrote to Union Finance Minister Nirmala Sitharaman outlining concerns from traders and industry.
Patel said the charges could increase operating costs for businesses, including small shops, retailers, service providers and MSMEs.
The Centre said everyday person-to-person transfers and small payments would remain outside the charges.
- Who
- The Federation of Jharkhand Chamber of Commerce and Industries, led by president Tulasi Patel, has urged the Centre to act; Union Finance Minister Nirmala Sitharaman received the letter.
- What
- The trade body is seeking a rollback of a proposed 0.4 per cent MDR on UPI merchant transactions above Rs 2,000.
- When
- The Centre said the fee would apply from October 15; the trade body’s appeal was reported on Friday.
- Where
- The appeal came from Ranchi, Jharkhand, and concerns UPI transactions across the country.
- Why
- FJCCI says the charge could raise business operating costs and weaken the zero-MDR model that helped drive UPI adoption.
Trade Body’s Position
Centre’s Position
Whether the charge should proceed
Trade Body’s Position
FJCCI wants the Centre to roll back the proposed MDR on UPI merchant transactions above Rs 2,000.
Centre’s Position
The Centre has said the 0.4 per cent fee will apply to qualifying merchant transfers from October 15.
Impact on businesses
Trade Body’s Position
FJCCI president Tulasi Patel says the charge could increase operating costs for business establishments, particularly small shops, traders, retailers, MSMEs and service providers.
Centre’s Position
The Centre’s stated position, as reported, is that person-to-person transactions and small payments will remain free of the charge.
Effect on digital-payment adoption
Trade Body’s Position
FJCCI says the zero-MDR regime helped UPI become widely accepted and encouraged businesses to adopt digital payments.
Centre’s Position
The Centre has not, in the article, provided a response to this concern beyond specifying which transactions would be charged and which would be exempt.
- Proposed charge
- 0.4 per cent Merchant Discount Rate
- Transaction threshold
- UPI merchant payments above Rs 2,000
- Start date
- October 15
- Exempted payments
- Everyday person-to-person transactions and small payments
- Appealing body
- Federation of Jharkhand Chamber of Commerce and Industries (FJCCI)
- Letter recipient
- Union Finance Minister Nirmala Sitharaman
- Main concern
- Higher operating costs for businesses