📷 Image: Wikimedia Commons / Palauenc05
Business
Petrol pumps in MP and Punjab to stop UPI payments above Rs 2,000 from Oct 16
✍️ The Economic Times
🗓 22 Sep 2026, 03:32 AM
👁 10
Starting October 16, petrol pump dealers in Madhya Pradesh and Punjab will no longer accept UPI payments for fuel purchases exceeding Rs 2,000, citing a 0.4% merchant discount rate charge.
The change will take effect on October 16 and applies to all petrol pump outlets in the two states. Dealers have said that the decision stems from the 0.4% MDR levied on UPI transactions, which they say makes higher-value fuel sales unviable.
Consumers who wish to pay more than Rs 2,000 for fuel will need to use alternative methods such as cash, debit or credit cards, or other digital wallets that do not attract the same charge. The restriction does not affect UPI payments for amounts up to Rs 2,000.
Industry observers note that the move could influence digital payment adoption at fuel stations, though dealers maintain that the step is necessary to protect their margins amid rising operational costs.
Consumers who wish to pay more than Rs 2,000 for fuel will need to use alternative methods such as cash, debit or credit cards, or other digital wallets that do not attract the same charge. The restriction does not affect UPI payments for amounts up to Rs 2,000.
Industry observers note that the move could influence digital payment adoption at fuel stations, though dealers maintain that the step is necessary to protect their margins amid rising operational costs.