Carry Cash for Fuel? Petrol Dealers Oppose Proposed ₹5 UPI Charge
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Petrol Pump Dealers Threaten to Stop UPI Payments Above ₹2,000 Over Proposed ₹5 MDR
Customers May Need to Carry Cash as Fuel Dealers Oppose Proposed UPI Charges
Petrol pump customers may soon need to carry cash when refuelling their vehicles, as petrol pump dealers across India have threatened to stop accepting UPI payments of ₹2,000 or more if a proposed fixed Merchant Discount Rate (MDR) of ₹5 per transaction is introduced.
The dealers are opposing the proposed charge, arguing that paying a fixed ₹5 MDR on every eligible UPI transaction would increase their operating costs.
According to the dealers' warning, if the proposed system comes into effect, petrol pumps could stop accepting UPI payments for transactions of ₹2,000 and above and instead ask customers to make payments in cash.
The issue could particularly affect customers who routinely use UPI for high-value fuel purchases. Smaller UPI transactions would not necessarily be covered by the threatened restriction, depending on the final rules governing the proposed MDR.
The development has raised concerns among digital-payment users, particularly as UPI has become one of the most widely used payment methods in India.
For now, customers should check with their local fuel station regarding accepted payment methods, particularly when making purchases of ₹2,000 or more.
