MP Petrol Pumps to Block UPI Over Rs 2,000

By Business DeskMP Petrol Pumps to Block UPI Over Rs 2,000

Starting October 16, petrol pumps in Madhya Pradesh will stop accepting UPI payments above Rs 2,000 due to Merchant Discount Rate (MDR) disputes.

The Policy Shift in Madhya Pradesh

Petrol pump operators in Madhya Pradesh have declared that they will no longer accept UPI payments for transactions over Rs 2,000, effective October 16. This decision stems from a long-standing dispute regarding the Merchant Discount Rate.

The Core Dispute Over Margins

Dealers contend that the fees associated with digital transactions significantly impact their already thin profit margins on fuel sales. By imposing this limit, the dealers aim to pressure payment service providers and authorities to address their concerns regarding transaction costs.

Alternative Payment Methods

Customers are advised to prepare for alternative payment methods for larger fuel purchases to avoid inconvenience. The recommended options include:

Cash payments for transactions exceeding the limit.

Credit or debit cards as substitutes for digital wallet transfers.

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