Shah Re Khass Traders Chambers Urges Govt to Reconsider UPI MDR on Transactions Above ₹2,000

GNS ONLINE NEWS PORTAL

NEW DELHI, SEPT, 18:– The Shah Re Khass Traders Chambers and Society has urged the Government of India to reconsider the newly introduced Merchant Discount Rate (MDR) framework for specified UPI merchant transactions above ₹2,000, saying that additional transaction costs could put further pressure on small and marginal traders operating on narrow profit margins.
The Chambers welcomed the Government’s efforts to strengthen India’s digital payment ecosystem but said the concerns of small retailers, neighbourhood shops and other businesses with limited margins should also be taken into consideration.
The Chairman of the Shah Re Khass Traders Chambers and Society said that while the proposed MDR may appear modest for large corporations and high-volume businesses, even a small transaction-related cost can affect small traders already facing multiple expenses, including taxes, compliance costs, rentals, electricity bills, staff expenses and weak consumer demand.
The Chambers stressed that the success of UPI has been closely associated with its simple and low-cost payment mechanism. It said small traders should continue to be encouraged to accept digital payments rather than become concerned about transaction-related charges.
According to the currently reported framework, a 0.4% MDR is to apply to specified Person-to-Merchant (P2M) UPI transactions above ₹2,000 from October 15, 2026, while transactions up to ₹2,000 remain outside the MDR. The framework also provides exemptions and separate provisions for certain small-merchant categories. �
FinTechBizNews
The Shah Re Khass Traders Chambers and Society particularly urged the Government to ensure adequate protection for micro and small traders whose businesses depend substantially on UPI payments but operate with limited margins.
The Chambers also called for greater clarity and a wider exemption mechanism so that genuine small businesses do not inadvertently fall outside the protections available under the new framework.