Kerala Textile and Garments Association warns 0.4% UPI fee
The Kerala Textile and Garments Association (KTGA) isn't happy about a proposed 0.4% fee on UPI payments.
Their State president, Pattabhiraman TS, says this Merchant Discount Rate (MDR) would eat into already slim net profit margins, sometimes just 1-5%.
He points out that if the fee goes through, every step from manufacturer to retailer would feel it, likely making things more expensive for shoppers and possibly sending businesses back to cash.
KTGA seeks govt backing UPI ₹20,000cr-₹25,000cr
KTGA is also asking the government to chip in for UPI's annual operating costs (₹20,000 crore to ₹25,000 crore), suggesting these could be funded by annual tax revenues.
As Pattabhiraman puts it, banks benefit from digital payments too, UPI means more deposits and less hassle with cash, so sharing the cost just makes sense.