Nagpur Traders Celebrate Delay of UPI MDR Charge
The postponement of the Merchant Discount Rate on UPI transactions offers relief to Nagpur's traders during the festive season, but calls for a permanent withdrawal continue.
The proposed 0.4% MDR on UPI transactions has been deferred beyond Diwali.
Traders demand a permanent withdrawal of the MDR, emphasizing the burden of additional costs.
Local business chambers organized protests and submitted representations to the government.
In Nagpur, traders are expressing relief following the government's decision to postpone the implementation of the Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions until after Diwali. This decision comes at a crucial time, as the festive season is a peak period for business activities in the region.
The Chamber of Associations of Maharashtra Industry & Trade (CAMIT) has been vocal about its concerns regarding the proposed 0.4% charge on merchant transactions exceeding ₹2,000. Dipen Agrawal, the chamber's president, highlighted that traders have significantly contributed to the popularity of UPI and the growth of India's digital payments landscape. He stressed that imposing additional costs on merchants accepting digital payments would be counterproductive.
The Nag Vidarbha Chamber of Commerce (NVCC) also welcomed the deferment, having previously submitted a representation to the government on October 2 and organized protests on October 9 across various locations in Nagpur. NVCC president Swapnil Ahirkar noted that the delay would enable traders to operate without incurring extra expenses during the festive rush. However, CA Hemant Sarda, the chamber's secretary, warned that the charges might still be enforced after Diwali, and the NVCC is prepared to oppose any such move.
CA Ashwini Agrawal, vice-president and convener of the UPI committee, indicated that if the government attempts to reintroduce the charges post-festival, the chamber would escalate its protests. The traders' body is advocating for a complete withdrawal of the MDR proposal rather than a mere postponement.
Rajesh Rokde, chairman of the Gems and Jewellery Council, emphasized the precarious situation faced by traders, particularly in the bullion sector. He pointed out that with already slim profit margins, any additional transaction fees could render their businesses unviable. He expressed concern that a sudden reversal in payment methods could negatively impact the economy, especially given the rising volume of transactions through UPI and other digital means.
