UPI Transaction Charges Go Against 'Ease Of Doing Business' Policies: Traders' Welfare Board Member

Citing larger interests of consumers and businesses, a member of the National Traders' Welfare Board (NTWB) on Wednesday said the Centre should immediately withdraw its decision to impose a 0.4% merchant discount rate (MDR) on UPI transactions above ₹2,000.

He cautioned that charges on UPI transactions would adversely impact business growth.

Ramesh Khandelwal, who represents Madhya Pradesh on the government-constituted NTWB, told PTI, "The decision to impose MDR on UPI transactions is against the government's policies on ease of doing business. This will impact business growth and may lead to higher prices." He urged the central government to immediately withdraw its decision to impose MDR on UPI transactions in larger interests of consumers and businesses.

Khandelwal said he will raise the issue of levying MDR on UPI transactions in the upcoming meeting of the NTWB.

The Department for Promotion of Industry and Internal Trade (DPIIT) has set up NTWB to advise the central government for the fulfilment of various welfare measures of traders and their employees.

Ending nearly 6 years of fully free UPI payments, the Centre on Tuesday introduced a 0.4% fee on transfers worth more than ₹2,000 made to merchants through the platform from October 15, while ring-fencing person-to-person transactions as well as small payments from any charge.

The charge will be borne by merchants, not consumers, and will be capped at ₹300 for transactions of ₹75,000 or more, according to the new framework. Person-to-person UPI transfers and merchant transactions of up to ₹2,000 will remain free.