Mumbai Fuel Pumps Threaten To Drop UPI From Oc 15 'MDR Fee'

Vehicle owners in Mumbai may face problems in buying fuel as petrol pumps across the city have threatened to stop accepting UPI payments from October 15 if the Centre does not exempt fuel retailers from the revised merchant discount rate (MDR) above Rs 2,000. 

The Petrol Dealers Association of Mumbai (PDAM) has written to the Reserve Bank of India and the Finance Ministry, seeking a complete waiver of the charges for fuel retailers. 

The association warned that dealers could withdraw UPI payment facilities



if the MDR is not rolled back.

The Centre has introduced a 0.4 percent MDR on person-to-merchant UPI transactions above Rs 2,000, with exemptions for certain small and micro merchants. However, petrol pumps have raised concerns over the additional cost saying they frequently receive transactions above the threshold. 

Petrol pump operators argue that since fuel prices are regulated, they cannot pass the additional transaction costs on to customers and this charge will impact their already limited profit margins.