Governments Decision to Postpone UPI MDR Reflects Sensitivity to Traders Concerns, Says CAT

New Delhi, October 13 (Daily Kiran) : The Confederation of All India Traders (CAT) expressed its approval on Tuesday regarding the government’s decision to postpone the proposed Merchant Discount Rate (MDR) on select Unified Payments Interface (UPI) transactions.

This move is seen as a protective measure for traders’ interests, especially as the trend of digital payments continues to rise during the festive season. CAT thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for making this decision at a crucial time when micro, small, and medium enterprises (MSMEs) typically experience peak sales due to festivals and weddings.

The organization stated, “This decision is timely and practical, particularly during the vital season of festivals and weddings when millions of traders and MSMEs conduct more business.”

By postponing the UPI MDR, traders will be spared from additional transaction costs, which could have burdened businesses operating on thin margins. CAT emphasized that such costs could have posed an unnecessary strain on traders and hindered the widespread adoption of digital payments.

This development follows a meeting on September 30, where a delegation of around 20 business leaders, led by CAT Secretary General Praveen Khandelwal, discussed their concerns with the finance minister at the Krity Bhawan in New Delhi.

CAT is also coordinating with trade associations nationwide to ensure that traders’ concerns are effectively communicated to the government. Khandelwal noted that while CAT fully supports digital payments, it is crucial that the system remains affordable and sustainable for traders, particularly small businesses.

He remarked, “We sincerely thank Prime Minister Modi and Finance Minister Sitharaman for understanding traders’ concerns and making a positive decision. CAT supports digital payments, but it must remain cost-effective and sustainable for traders, especially small businesses.”

Khandelwal added that this postponement will bolster traders’ confidence and strengthen the partnership between the government and the business community in building a robust digital India.