📷 Image: Wikimedia Commons / Yann Forget
Business
Madhya Pradesh petrol pumps reject UPI MDR fee for transactions over Rs 2,000, call for cash payments
✍️ India Today
🗓 21 Sep 2026, 07:01 PM
👁 10
Petrol stations in Madhya Pradesh have refused to accept the merchant discount rate imposed on UPI payments exceeding Rs 2,000, urging customers to pay in cash.
Petrol pumps across Madhya Pradesh have collectively voiced opposition to the recently announced merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions that exceed Rs 2,000. The operators argue that the fee erodes their profit margins and could compel them to raise fuel prices.
The association representing the pumps has issued a notice to banks and payment service providers, stating that they will no longer accept UPI payments above the Rs 2,000 threshold unless the MDR is withdrawn. Instead, they are urging motorists to settle their purchases in cash.
State officials have been approached for clarification, and the matter is expected to be discussed with the Ministry of Finance and the National Payments Corporation of India to assess the impact on small businesses and consumers.
If the MDR remains in force, the pumps warn that they may limit digital payment options, potentially affecting the broader push for a cash‑less economy in the region.
The association representing the pumps has issued a notice to banks and payment service providers, stating that they will no longer accept UPI payments above the Rs 2,000 threshold unless the MDR is withdrawn. Instead, they are urging motorists to settle their purchases in cash.
State officials have been approached for clarification, and the matter is expected to be discussed with the Ministry of Finance and the National Payments Corporation of India to assess the impact on small businesses and consumers.
If the MDR remains in force, the pumps warn that they may limit digital payment options, potentially affecting the broader push for a cash‑less economy in the region.