Retailers warn 0.4% UPI fee on payments over ₹2,000
Retailers aren't happy about a new 0.4% fee on merchant UPI payments over ₹2,000, set to kick in from October 15.
The Retailers Association of India (RAI) says this extra charge could make small shop owners switch back to cash, especially as the festive season gets underway, reversing gains in digital payment adoption among small retailers.
RAI and CMAI urge government subsidy
RAI's CEO Kumar Rajagopalan put it simply: RAI said, "For MSME retailers already running on thin margins, burden creates a straightforward incentive to steer transactions back toward cash."
Both RAI and the Clothing Manufacturers Association of India say the government should help cover these network costs so digital payment growth doesn't stall.
They're worried that if merchants have to pay more, it could hurt India's progress toward a more digital economy.