JAMMU, Sep 18: Suheldev Bharatiya Samaj Party (SBSP) State President, Jammu and Kashmir, Vivek Bali has urged the Central Government to reconsider any proposal to levy Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions, stating that such charges could affect small merchants and users of digital payments.
In a statement, Bali said that UPI has emerged as an important component of India’s digital payments ecosystem and has enabled small vendors, shopkeepers, students and citizens to make quick digital transactions. He argued that imposing charges on UPI transactions could increase the cost of digital payments for small traders and potentially discourage their use.
“UPI was made popular because it was free, fast and secure. From a roadside tea stall to a big showroom, everyone today accepts UPI. If MDR is imposed, small merchants will be discouraged from using digital payments and it will push the country back towards cash transactions,” Bali said.
Bali said the growth of UPI has contributed to the expansion of digital payments in the country. He stated that the Government should continue to promote digital transactions and consider measures that support small businesses and merchants adopting digital payment systems.
The SBSP leader suggested that instead of imposing charges on merchants, the Government could consider providing greater incentives to small traders who promote digital payments. He also called for strengthening banking and digital payment infrastructure in rural areas to improve access to financial services.
Bali urged Union Finance Minister Nirmala Sitharaman and the Reserve Bank of India to examine the issue and ensure that the interests of customers and small merchants are taken into consideration while framing policies related to UPI transactions.
He also appealed to traders’ organisations and youth groups to raise awareness about the importance of accessible digital payment systems and participate in discussions concerning the future of digital transactions in the country.