Digital payments have grown rapidly across India over the past few years. From small everyday purchases to high-  value transactions, people are increasingly relying on UPI for payments. However, reports of new UPI payment rules have raised concerns among merchants, especially regarding the proposed Merchant Discount Rate (MDR) charges on large merchants.

While ordinary customers won't have to pay any extra fees for making UPI payments, many shopkeepers are reportedly concerned about the impact the charges will have on their  businesses . As a result, some merchants in Delhi have begun refusing to accept online payments.

Many shopkeepers refused to accept online payments.
According to a report in Amar Ujala, traders in markets like Laxmi Nagar and Krishna Nagar, as well as many other commercial areas, have started refusing to accept UPI payments.

The report states that the National Payments Corporation of India (NPCI) has announced a 0.4% charge on UPI transactions above ₹2,000, which will reportedly come into effect from October 15. This announcement has angered merchants in Delhi, with some expressing concern about the extra costs associated with digital transactions.

This development could cause problems for customers who have become accustomed to using UPI for almost every purchase. Whether it's for ₹10, ₹100, ₹1,000, or more, digital payments have become a part of everyday life for millions of people. If more merchants stop accepting UPI, customers could face further difficulties.

Could customers face further problems?

If many shops in an area stop accepting digital payments, customers who don't carry cash may face difficulties. This is especially evident when making small payments at grocery stores, tea and snack shops, auto-rickshaws, and other local businesses.