Petrol pumps may stop accepting UPI payments above Rs 2,000 from October 15 over proposed MDR

In Madhya Pradesh, petroleum dealers have demanded withdrawal of the proposed charge and exemption of fuel sales from MDR. PIC/ISTOCK

Petrol pump dealers in Madhya Pradesh and other parts of the country may stop accepting UPI payments above Rs 2000 from October 15 over the proposed merchant discount rate (MDR) of 0.4 per cent on fuel transactions.

The All India Petroleum Dealers Association has also sought a complete waiver from the proposed charge, arguing that rising operating costs and unchanged fuel commissions make it difficult to absorb additional costs.

According to media reports, in Madhya Pradesh, petroleum dealers have demanded withdrawal of the proposed charge and exemption of fuel sales from MDR.

The Confederation of All India Traders (CAIT) has raised concerns over the proposed restriction. Media reports say that the traders' body described the move to stop accepting UPI payments above Rs 2000 as a serious concern.

If dealers implement the restriction, customers making higher-value fuel purchases may have to use cash, cards, or other payment methods at participating petrol pumps.

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