Dharwad Chamber urges removal of MDR on UPI above ₹2,000
Business
The Dharwad Chamber of Commerce and Industries is urging the government to get rid of Merchant Discount Rate (MDR) charges on specified UPI transactions above ₹2,000.
They are worried these extra fees make things tougher for local shop owners and could lead to higher prices for consumers.
Chamber suggests Merchant Service Recognition Fund
The chamber says charging MDR on payments over ₹2,000 (with a ₹300 cap) puts too much pressure on merchants, especially those selling items with fixed prices or low margins.
They're suggesting the government cover UPI costs, just like it does with cash, and even set up a Merchant Service Recognition Fund by earmarking a small portion of taxes collected through merchants, including GST, to recognize what merchants contribute.