Merchants in Odisha express concerns over proposed charges on UPI payment

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Bhubaneswar: Merchants in Odisha expressed concern over the proposed charges on UPI payments. They stated that the imposition of charges on UPI transactions would adversely affect those operating on thin profit margins.

While speaking to Kalinga TV, one Krushnachandra Panda, a businessman, said that nowadays, customers rely on UPI for payments of all sizes—ranging from as little as Rs 5 to Rs 5,000 or even more.  Shops handle UPI transactions worth thousands of rupees daily.

He argued that if charges are levied on UPI payments while they are already operating on low margins, their profits will shrink further. Moreover, customers are unlikely to agree to pay any additional charges. Consequently, it is the merchants who will have to bear the burden of these charges themselves.

Some merchants have remarked that if such a charging system is implemented, they might be forced to stop accepting UPI payments and revert to cash transactions.

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They claimed that the UPI has simplified the payment process for people in the digital age and reduced the need to keep cash in shops. In this context, a resurgence in cash transactions could create difficulties for both customers and traders, they added.

If traders have to shoulder the additional cost of these charges, their business margins will be affected; conversely, if the cost is passed on to customers, there is a risk of rising product prices, said another merchant named Kanhu Sahu.

Therefore, the proposed charges on UPI payment will impact not only the business community but consumers as well, he added.

Also Read: UPI Charges Explained: New 0.4% MDR Above ₹2,000 From October 15

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