Amid the protests, the Madhya Pradesh Petrol Pump Dealers Association has announced that it will stop accepting UPI payments for petrol and diesel purchases above Rs 2,000 from October 16. If the government does not withdraw the MDR, only cash payments will be accepted at petrol pumps operated by members of the association.
Madhya Pradesh Petrol Pump Dealers Association president Ajay Singh said in a statement that if the government does not withdraw the MDR, the organisation's members have decided not to accept UPI payments above Rs 2,000 at their petrol pumps from October 16. Only cash payments will be accepted.
According to Ajay Singh, a petrol pump would face a loss of around Rs 17,700 every month under the new system. He said their margins are already low and they cannot bear the additional expense.
The association has therefore linked its decision directly to the government's position on the MDR charge, with petrol pump dealers in Madhya Pradesh set to restrict UPI payments above the Rs 2,000 threshold from October 16 if the charge is not withdrawn.
According to the figures, more than 96 per cent of all merchant payments made through UPI in India are transactions of Rs 2,000 or less.
The government, meanwhile, has maintained that more than 95 per cent of small and medium-sized merchants in the country will remain completely outside the scope of the MDR charge. The contrasting positions over the proposed fee have nevertheless led to protests and confusion over how the new UPI payment rules will affect merchants.
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