Concerns Rise Among Kashmir Traders Over UPI Merchant Discount Rate
Traders in Kashmir express worries about the impact of UPI Merchant Discount Rate on small businesses and digital payments.
Srinagar, September 19 (Daily Kiran) : Traders in Kashmir are raising alarms over the proposed Merchant Discount Rate (MDR) for UPI transactions, fearing it could adversely affect small businesses. Bashir Ahmad and trader Asif Ahmad, based in Srinagar, voiced their concerns, stating that any additional fees on UPI transactions could pose significant challenges for small retailers.
Bashir Ahmad questioned a statement allegedly made by Chief Minister Omar Abdullah, which suggested that UPI would not impact the common man. He emphasized that small shopkeepers and traders are part of the community, and any negative effects on their businesses would ultimately reach consumers.
He noted that small traders are already grappling with various economic pressures, including rising electricity bills, interest rates, and other business-related expenses. Many are adopting digital payment methods, and the introduction of extra costs on UPI transactions could make it difficult for them to sustain their operations.
Ahmad expressed concerns that if traders are burdened with additional fees for UPI payments, some may revert to cash transactions. This shift could undermine efforts to promote digital payments and complicate matters for consumers.
He also referenced the difficult experiences of Kashmir’s traders in recent years, who have faced prolonged business shutdowns due to floods, protests, the COVID-19 pandemic, and other challenges. Ahmad argued that imposing new economic burdens on traders in such a volatile environment is inappropriate. He urged the central government to consider the unique circumstances of Jammu and Kashmir’s business community.
Asif Ahmad added that the proposed UPI fees could have a detrimental impact on trade. UPI has become a convenient method for financial transactions, used by both traders and customers. If additional charges are implemented, it could drive some traders and customers to alternative payment methods or applications, potentially disrupting the digital payment ecosystem.
He echoed concerns raised by petrol pump operators, stating that such a system could hinder many people’s ability to make digital payments. Ahmad called on the central government to reassess the proposal, emphasizing the need to maintain UPI as an accessible and comprehensive digital payment option.
