Punjab and Haryana petrol pump owners to stop taking UPI payments over MDR charges
PTC Web Desk: Petrol pump dealers in Punjab and Haryana have announced they will soon stop accepting UPI payments. They are unhappy with the Merchant Discount Rate (MDR) that is charged on digital transactions.
Speaking on behalf of the association, Punjab president Paramjit Singh Doaba and state spokesperson Monty Sehgal said dealers are already under financial pressure. They said the commission paid on fuel sales is very low and the policies of oil companies have made it hard to keep pumps running. On top of this, the MDR deducted from digital payments is now cutting directly into their earnings, they added.
The decision could affect many motorists. Most people now pay for petrol and diesel through Google Pay, PhonePe and other UPI apps instead of cash. If pumps stop accepting UPI, customers may have to carry cash or use other payment methods when they go to fill up.
The association warned that if the Centre does not listen to their concerns, they will plan a bigger protest at the national level.
Demand to lock pump washrooms
The association also raised another issue. It said washrooms at petrol pumps are open to everyone, but some young people are misusing them to take drugs. Calling this a serious problem, the dealers asked for permission to keep the washrooms locked, so that drug use can be stopped.
UPI 0.4% charge deferred until Diwal
The implementation of Merchant Discount Rate (MDR) charges on certain Unified Payments Interface (UPI) transactions has been postponed until after Diwali, the National Payments Corporation of India (NPCI) announced on Tuesday. The move is aimed at avoiding disruptions during the busy festive shopping season.
According to an NPCI statement dated October 13, the UPI and Services Steering Committee decided that MDR charges on selected person-to-merchant (P2M) transactions would be introduced immediately after Diwali. The exact date will be announced separately.
"UPI and Services Steering Committee today decided that, keeping in mind the festive season, Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions, shall be implemented immediately post Diwali at a date to be notified separately," said NPCI in its release.
The charges were earlier scheduled to take effect from October 15. However, merchant groups, fintech firms and payment companies had reportedly requested a delay, citing concerns about the impact on businesses and consumers. Earlier reports suggested that NPCI was also considering postponing the rollout until January 2027.
Industry representatives have raised concerns about confusion over which transactions would attract the charges and whether different rates would apply to different categories.
Also Read | Supreme Court refuses to stay charges on UPI payments above Rs 2,000 , questions legal basis of MDR
- PTC NEWS
