Why retailers and merchants are pushing back against UPI MDR

The new UPI Merchant Discount Rate (MDR) framework is drawing heavy resistance from fuel pump dealers, retailers and industry bodies, who argue that thin margins make the levy unworkable and could compromise digital payment adoption, especially among small merchants. On Monday, Union Finance Minister Nirmala Sitharaman clarified that MDR is neither a tax nor a cess. It is a charge levied by service providers to strengthen the UPI infrastructure and provide better services, Sitharaman said, reite