'6 Crore Traders Disappointed': Trade Body Urges Nirmala Sitharaman To Roll Back UPI Charges
The Chamber of Trade and Industry has urged the Indian government to roll back a new 0.4% Merchant Discount Rate on UPI transactions exceeding Rs 2,000. Traders fear the additional costs will discourage digital payments and force a return to cash transactions.
Why it matters
This policy change could significantly impact India's digital economy and the adoption rates of the UPI payment system among small businesses.
The Chamber of Trade and Industry (CTI) has urged the central government to reconsider upcoming UPI charge on high-value merchant payments. CTI Chairman Brijesh Goyal has written to Finance Minister Nirmala Sitharaman seeking a rollback of the Merchant Discount Rate (MDR) on UPI payments above Rs 2,000, which is scheduled to take effect from October 15, 2026.Under the new framework, eligible person-to-merchant UPI transactions above Rs 2,000 will attract an MDR of 0.4 per cent, subject to a maximum charge of Rs 300 per transaction. Payments between individuals will continue to remain free.
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