📷 Image: Wikimedia Commons / Ramesh Lalwani
Business
Rajasthan traders protest UPI MDR charges, warn of service shutdown
✍️ Amar Ujala · Jaipur
🗓 18 Sep 2026, 03:15 PM
👁 12
Merchants in Rajasthan are rallying against the new UPI merchant discount rate, saying the fee will ultimately be borne by customers and threatening to stop accepting UPI payments.
Traders across Rajasthan have intensified their opposition to the recently announced merchant discount rate (MDR) on the Unified Payments Interface (UPI). Business associations argue that the additional charge will be transferred to end‑consumers, eroding the affordability that UPI promised.
The protest gained momentum after several small‑scale merchants in Jaipur and other towns announced they might stop accepting UPI transactions unless the fee structure is reconsidered. Representatives of local trade bodies have called for a dialogue with the central government and payment service providers, urging a rollback of the MDR.
While the government maintains that the MDR is essential for sustaining the digital payments ecosystem, the merchants contend that the move could hurt cash‑less commerce, especially in tier‑2 cities where a large share of sales depends on UPI. The standoff continues as both sides seek a compromise.
No official response has been issued yet, but the traders have warned that a widespread refusal to process UPI payments could disrupt daily commerce in the state.
The protest gained momentum after several small‑scale merchants in Jaipur and other towns announced they might stop accepting UPI transactions unless the fee structure is reconsidered. Representatives of local trade bodies have called for a dialogue with the central government and payment service providers, urging a rollback of the MDR.
While the government maintains that the MDR is essential for sustaining the digital payments ecosystem, the merchants contend that the move could hurt cash‑less commerce, especially in tier‑2 cities where a large share of sales depends on UPI. The standoff continues as both sides seek a compromise.
No official response has been issued yet, but the traders have warned that a widespread refusal to process UPI payments could disrupt daily commerce in the state.