Archive · 19 Sep 2026
Ghaziabad Traders Protest Proposed UPI Fee on Large Payments
Some shopkeepers in Ghaziabad are worried about a possible new fee on certain large UPI payments.
They have put up signs saying UPI may not be accepted for purchases above Rs 2,000.
The proposed fee is called the Merchant Discount Rate, or MDR.
It would be 0.4 per cent and would be paid by the shopkeeper.
The government says shopkeepers should not add this fee to customers’ bills.
Most small UPI payments would still have no fee.
More than 95 per cent of person-to-merchant UPI payments are below Rs 2,000.
The government says only about 4 per cent of UPI transactions would be affected.
RuPay debit card payments would remain free regardless of the amount.
Ghaziabad traders have posted notices warning that UPI may not be accepted for purchases above Rs 2,000 from October 15.
The proposed Merchant Discount Rate is 0.4 per cent on specified person-to-merchant UPI transactions above Rs 2,000.
The charge would be paid by merchants, with a maximum of Rs 300 on transactions of Rs 75,000 or more.
The Centre says merchants should absorb the fee rather than pass it on to customers.
The government estimates only about 4 per cent of UPI transaction volume would be affected, while RuPay debit card payments would remain free.
- Who
- Ghaziabad traders, the Centre, payment aggregators, banks, and UPI users.
- What
- Traders are protesting a proposed 0.4 per cent MDR on specified UPI payments above Rs 2,000 and warning that they may refuse such payments.
- When
- The proposed framework is scheduled to apply from October 15.
- Where
- At shops in Ghaziabad and across specified person-to-merchant UPI transactions.
- Why
- Traders say they may not want to absorb the additional cost, while the government wants merchants to do so without charging customers.
Trader Concerns
Government Position
Who should bear the cost?
Trader Concerns
Traders say they may not be willing to absorb the 0.4 per cent MDR and could ask customers to use cash for larger purchases.
Government Position
The Centre says merchants should absorb the MDR and not pass it on to customers.
Effect on UPI acceptance
Trader Concerns
Traders in Ghaziabad warn that UPI may not be accepted for purchases above Rs 2,000 once the proposed charge begins.
Government Position
The government does not expect the MDR to push users back toward cash because most UPI payments are small-value transactions.
Impact on customers
Trader Concerns
Traders are concerned that the additional cost could eventually affect customers if merchants transfer it or require cash payments.
Government Position
The government is discussing monitoring with payment aggregators and platforms and has advised banks to prevent merchants from transferring the fee.
- Proposed MDR
- 0.4 per cent on specified person-to-merchant UPI transactions above Rs 2,000.
- Who pays
- The merchant, according to the proposed framework.
- Maximum charge
- Rs 300 for transactions of Rs 75,000 and above.
- Small payments
- Person-to-merchant UPI payments up to Rs 2,000 would continue to have zero MDR.
- Affected volume
- The government estimates around 4 per cent of UPI transaction volume would be affected.
- August transaction pattern
- 86 per cent of person-to-merchant UPI transactions were below Rs 500, while another 10 per cent were between Rs 501 and Rs 2,000.
- Alternative payment
- RuPay debit card payments would remain free regardless of transaction amount.