Delhi residents will hesitate before taking out their smartphones; will UPI payments be banned from October 15?

There is panic in the markets of Delhi, will ‘cash on hand’ return again?

There’s widespread concern among Delhi’s major trade associations and shopkeepers about the potential UPI MDR (Merchant Discount Rate) fee, which will come into effect on October 15th. Traders in Chandni Chowk, Connaught Place, Karol Bagh, and Sadar Bazaar clearly believe that imposing additional fees on digital transactions will directly impact their businesses. According to trade associations, this decision could push people away from digital payments and back to cash transactions.

Big burden on the little ones, a setback to the Digital India mission?

Traders say that micro and small retailers already have very low profit margins. Therefore, if MDR charges are imposed on UPI transfers, shopkeepers will not be able to bear this additional expense. They will be forced to pass on these charges to customers or refuse to accept payments via UPI. The Delhi Traders Association has warned that this government move could slow down India’s ‘cashless economy’ and ‘Digital India’ campaigns.

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Delhi traders have warned that the potential MDR charges on UPI from October 15 could dent digital payments and push people back to cash transactions. Read the full story.