States » WestPosted at: Sep 18 2026 3:24PM


Mumbai petrol pumps may stop accepting UPI payments from October 15 over MDR

Mumbai, Sep 18 ( UNI) Petrol pump operators in Mumbai have warned that they may discontinue UPI payment facilities from October 15 if the Centre does not exempt fuel retailers from the revised Merchant Discount Rate (MDR) applicable to high-value UPI transactions.
The Petrol Dealers Association of Mumbai has approached the Reserve Bank of India (RBI) and the union Finance Ministry, seeking a complete exemption for petrol and diesel retail outlets from the proposed MDR. The association has said that the additional transaction cost would put further pressure on the already tight margins of fuel dealers.
Under the revised UPI framework, the Merchant Discount Rate will be applicable to certain person-to-merchant (P2M) transactions exceeding Rs 2,000 from October 15. While the standard MDR has been fixed at 0.4 per cent for eligible transactions, fuel transactions above the threshold are covered by a concessional flat charge of Rs 5 per transaction, according to reports on the new framework. The charge is to be borne within the merchant payment ecosystem and is not to be directly recovered from customers.
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