Petrol dealers in Mumbai may block UPI above ₹2,000
Business
Starting October 15, Mumbai gas stations may stop accepting UPI payments above ₹2,000 because of a new 0.4% merchant fee (MDR).
The Petrol Dealers Association of Mumbai has asked the RBI and Finance Ministry to scrap this charge, saying their costs are up, but commissions haven't changed.
Over 60% Mumbai fuel purchases digital
Over 60% of fuel transactions in Mumbai happen digitally, so blocking UPI could really shake things up for both customers and retailers.
Fuel purchases frequently cross the ₹2,000 threshold, making the new fee tough to handle, especially since transaction charges are difficult to pass on to customers, leaving retailers to absorb the additional cost.