Petrol Pump Dealers Warn of Stopping UPI Payments Over MDR Charges

Petrol pump dealers across several states have expressed concern over the financial impact of a fixed Merchant Discount Rate (MDR) of Rs 5 on digital transactions. Dealers said their margins are already limited and that an additional cost on every transaction could put further pressure on their earnings.

Representatives of the Federation of All India Petroleum Traders said dealers may have to stop accepting UPI payments of Rs 2,000 and above if fuel retailers are not exempted from the proposed charge. Dealers from Delhi-NCR, Punjab, Uttar Pradesh, Mumbai, Karnataka and Rajasthan have also raised concerns over the issue.