MDR on UPI: Keralam hotels association says will stop accepting UPI payments above ₹2,000 from October 15
The Kerala Hotel and Restaurant Association will stop accepting UPI payments over ₹2,000 starting October 15 to protest a new 0.4% merchant discount rate. The association claims the fee imposes an unfair financial burden on small businesses already struggling with rising costs.
Why it matters
This reflects the growing pushback from small merchants against the costs associated with the widespread adoption of digital payment ecosystems.
The Kerala Hotel and Restaurant Association (KHRA) on Tuesday (October 13, 2026) announced that its members will stop accepting UPI payments above ₹2,000 from October 15, following the introduction of a 0.4% UPI merchant discount rate (MDR) framework , which it says will impose an additional financial burden on small establishments. Customers will have to pay in cash for transactions above ₹2,000, said KHRA president G. Jayapal.
“The industry is already suffering from the rising cost of raw materials. We feel cheated, especially since we were all encouraged to shift to digital payments and are now being charged extra for them. This will put an additional financial burden on us. The industry is already going through a difficult time due to rising prices, and this will plunge us further into a financial crisis,” said Mr. Jayapal.
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