Madhya Pradesh Petrol Pumps to Stop UPI Payments Above Rs 2,000 From October 16

Madhya Pradesh petrol pump dealers have announced that they will cease accepting UPI payments exceeding Rs 2,000 from October 16. The decision is attributed to the additional merchant charges under the new UPI Merchant Discount Rate (MDR) framework.

The Madhya Pradesh Petroleum Dealers Association has stated that fuel pump operators, operating on slender profit margins, cannot absorb the increased cost. According to news agency ANI, association president Ajay, Singh stated.

that the decision was taken following the announcement of the new MDR framework.

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The association's stance is that customers should be able to use UPI payments without any restrictions. However, petrol pumps will no longer accept UPI payments above Rs 2,000 from October 16.

The National Payments Corporation of India (NPCI) introduced a new MDR framework on September 15. Under the revised framework, selected Person-to-Merchant (P2M) UPI transactions above Rs 2,000 will attract an MDR of 0.4%, capped at Rs 300 per transaction.

For customers, UPI payments will remain free of charge. Meanwhile, merchants and participants in the payment ecosystem will bear the applicable MDR.

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The association's president explained that the profit margin is very small, resulting in only a 0.5% profit margin. Consequently, the association cannot absorb any additional expenses.

On the impact on customers, Singh stated that petrol pumps will continue to accept debit and credit cards without any limit.

The government's role in this matter has been urged by the association president. The association has already received an exemption from MDR charges on credit and debit card transactions. Therefore, it requests the government to extend the same exemption to UPI as well.