Deccan Herald ·
Economy, business and finance
Traders fear UPI fee will push small business back to cash amid festive season
Traders and industry bodies warn a 0.4% UPI MDR on transactions above Rs 2,000 could push small businesses back to cash, threatening digital payment gains ahead of the festive season. Critics say the timing risks hurting consumer-facing sectors already battling thin margins.
Though the National Payments Corporation of India (NPCI) said small merchants receiving up to Rs 1 lakh per month through UPI QR codes enjoy a mandatory zero-MDR, industry analysts said the amount is a small threshold and will affect small businesses.