Bhopal: Petrol pump dealers across Madhya Pradesh will stop accepting UPI payments above Rs 2,000 from October 15, citing the impact of the newly introduced 0.4% Merchant Discount Rate (MDR).
The decision was taken unanimously at a meeting of the MP Petrol Pump Association, which represents around 4,700 dealers across the state. For payments above Rs 2,000, customers will be asked to use cash instead of UPI.
Association president Ajay Singh said petrol dealers were opposing the new MDR as fuel sales increasingly rely on UPI, while dealers operate on fixed profit margins.
In a written statement, the association said dealers already bear MDR on credit card transactions and that extending the charge to UPI payments would increase their financial burden.
The association said it would not hold protests but would restrict UPI transactions above the specified limit as a way of reducing the additional cost.
The move is expected to affect customers, particularly in rural areas where many consumers rely heavily on digital payments.
An association member said limiting UPI for larger fuel purchases could create difficulties for customers who do not routinely carry cash.
The decision comes ahead of the new UPI MDR framework, under which specified merchant transactions above Rs 2,000 will attract a 0.4% charge within the payment ecosystem.
