Indian retailers and fuel dealers push back against UPI MDR

India will introduce an MDR fee on UPI transactions above Rs 2,000 from October 15: 0.4% in general, a flat Rs 5 for fuel and essential goods, and 0.02% (capped at Rs 300) for capital market trades. Fuel pump associations and retailer bodies say thin margins make the levy unworkable and threaten to stop accepting high-value UPI payments.

• From October 15, a 0.4% MDR applies to UPI payments above Rs 2,000
• Fuel and essential goods face a flat Rs 5 fee per transaction
• Madhya Pradesh fuel dealers will reject UPI payments above Rs 2,000 from October 16
• RAI warns the fee will push small merchants back to cash