Quick Summary
A new UPI payment rule is creating concern among petrol pump dealers, with some associations warning that they may stop accepting UPI payments above Rs 2,000 from October 16, 2026. The issue is linked to the revised Merchant Discount Rate (MDR) framework that takes effect from October 15. Under the new arrangement, certain merchant transactions above Rs 2,000 will attract an MDR, while fuel stations will face a flat Rs 5 charge on eligible transactions. For petrol dealers, the concern is strai
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FAQ :
Petrol dealers may limit UPI payments over £2,000 because a new Merchant Discount Rate (MDR) framework will impose a flat £5 charge on such transactions, which they find unsustainable given their narrow profit margins.
Some petrol dealer associations have indicated they may stop accepting UPI payments above £2,000 from October 16, 2026, following the revised MDR framework taking effect on October 15.
No, customers are not supposed to pay the £5 MDR charge directly. The Finance Ministry has clarified that MDR is a cost within the payment system and merchants should not pass it on to consumers as a separate fee.
If a petrol pump restricts UPI payments above £2,000, customers may need to use an alternative payment method such as cash or a card for purchases exceeding that amount.
No, UPI payments are expected to continue working for transactions of £2,000 or below. The restriction would only apply to larger purchases at specific petrol stations that decide to implement it.
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