Dharwad Chamber of Commerce and Industries seek withdrawal of MDR on UPI transactions

The Dharwad Chamber of Commerce and Industries has urged the government to withdraw Merchant Discount Rate (MDR) charges on specified UPI transactions, saying the levy would increase the burden on traders and could eventually raise prices for consumers.

In a memorandum to the Finance Minister, submitted through the Deputy Commissioner of Dharwad, the chamber welcomed the promotion of digital payments but sought deletion of the MDR-related provisions from the Act.

It questioned the rationale for imposing MDR on transactions above ₹2,000 and termed the proposed ₹300 cap discriminatory. Shifting the burden from the payer to the merchant, it said, was against the principle of ease of doing business.

The chamber said the additional cost could particularly affect traders dealing in goods with printed MRP and operating on thin margins. They might have to absorb the cost until stocks carrying revised MRPs reached the market, it said.