Cash ₹120, UPI ₹121! Indian Shopkeepers Start The UPI Drama #shorts

Episode Title: Cash ₹120, UPI ₹121! Indian Shopkeepers Start The UPI Drama #shorts
Produced by: FactTechz
Description: Shopkeepers Begin Rejecting UPI, Ask for Cash as MDR Anger Grows Some Indian shopkeepers have begun displaying notices refusing UPI payments and asking customers to use cash, as opposition grows to the new Merchant Discount Rate on selected digital transactions. Traders in Ghaziabad and other markets have reportedly placed “UPI payment will not be accepted” notices outside their shops. Meanwhile, business groups in Delhi, Maharashtra and Madhya Pradesh are discussing protests, including a proposed “No UPI Day,” against the new fee. From October 15, eligible person-to-merchant UPI payments exceeding ₹2,000 will attract an MDR of 0.4 percent. The fee will be collected from merchants and cannot officially be passed directly to customers. Person-to-person transfers and approximately 96 percent of merchant transactions will remain free. Retailers argue that even a small percentage can reduce profits in sectors such as clothing, electronics and fuel, where margins may already be limited. Some fear that repeatedly absorbing the charge on larger purchases could make cash more attractive. However, the shift back to cash could also create difficulties. Businesses would need to manage change, count and transport currency, face possible theft risks and maintain more physical records. Customers who have become accustomed to scanning QR codes may also avoid shops refusing digital payments. The government says the MDR is necessary to fund UPI infrastructure, cybersecurity, fraud prevention and future innovation. Officials are preparing to monitor whether merchants improperly recover the fee from customers. The dispute shows UPI’s importance in everyday Indian commerce. Traders generally support digital payments but want a structure that protects narrow margins while ensuring that India’s globally successful payment network remains financially sustainable. Subscribe to FactTechz


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