A member of the National Traders’ Welfare Board (NTWB) has urged the Centre to immediately withdraw its decision to impose a above Rs 2,000, saying the move could hurt consumers and businesses.
Ramesh Khandelwal, who represents Madhya Pradesh on the government-constituted NTWB, said the levy could adversely affect business growth and eventually lead to higher prices.
“The decision to impose MDR on UPI transactions is against the government’s policies on ease of doing business. This will impact business growth and may lead to higher prices,” Khandelwal told PTI.
He urged the Centre to withdraw the decision in the larger interests of consumers and businesses.
Khandelwal also said he would raise the issue of levying MDR on UPI transactions at the upcoming meeting of the NTWB.
The Department for Promotion of Industry and Internal Trade (DPIIT) has set up the NTWB to advise the central government on various welfare measures for traders and their employees.
The Centre’s decision ends nearly six years of fully free UPI payments. From October 15, a 0.4 per cent fee will be imposed on merchant transactions above Rs 2,000 made through UPI, while person-to-person transfers and smaller merchant payments will remain free.
According to the new framework, the charge will be borne by merchants and not consumers. It will also be capped at Rs 300 for transactions of Rs 75,000 or more.
Person-to-person UPI transfers and merchant transactions of up to Rs 2,000 will continue to remain free.