Merchants across the country will not take money from UPI on October 2. The reason for this is that merchant organizations across the country have opened a front against the new merchant discount rate or MDR rules of UPI which will be implemented from October 15. Major trade associations of the country have announced to celebrate ‘No UPI Day’ across the country on October 2. During this protest, traders will protest by covering the UPI QR codes, scanners, sound boxes and other digital payment devices installed at their shops with black cloth. New MDR rules coming into effect from October 15 Under National Payments Corporation of India (NPCI) guidelines, an MDR charge of 0.40% has been proposed on Person-to-Merchant (P2M) UPI transactions above ₹2,000 from October 15. Maximum Cap: The maximum limit of this fee has been fixed at ₹300. Who will be exempted: General P2P (person-to-person) transfers and general merchant payments up to ₹2,000 will remain completely fee-free (Zero MDR). Relief to small sellers: Small sellers accepting UPI payments up to ₹1 lakh per month under the Person-to-Person-Merchant (P2PM) category have been kept out of the scope. MACCIA and more than 500 organizations involved in the protest Ravindra Mangve, President of Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA), said that they have coordinated with various business organizations across the country. MACCIA, along with more than 500 of its affiliated organizations, is planning to meet the Chief Minister on this issue and put forth their demands. Many national level major business organizations have given their support to this movement… Punishment for promoting Digital India – Traders’ side National President of AICPDF Dhairysheel Patil raised the question and said that retailers and distributors work on very low margins. Imposing additional MDR on digital transactions will increase trade costs. The aim of digital payments should be to simplify the process, not put a financial burden on merchants. Meanwhile, Shankar Thakkar, National President of All India Edible Oil Traders Federation, said that with the use of UPI, the entire payment chain has become transparent and the trend of cash has reduced. If traders are cooperating in making the system transparent, then imposing a fee on them is like penalizing honest business instead of promoting Digital India. He warned that if the government did not reconsider this decision, the movement would be further intensified. Know the scope and other effects of UPI in figures. What is Merchant Discount Rate (MDR)? MDR (Merchant Discount Rate) is the fee that a merchant pays to a payments service provider (such as a bank, NPCI or a payment gateway) for accepting digital payments (such as debit/credit card or UPI) from its customer. This fee is charged to meet the cost of running the digital infrastructure and transfer network smoothly. As a rule, this fee has to be paid by the merchant, not by the customer.
Source link
[ad_3]
Merchants will not take money from UPI across the country on October 2: Will cover the QR code with black cloth; Opposition to 0.4% charge on transactions larger than ₹2000
