The Retailers Association of India warns that new UPI fees could lead small merchants to revert to cash transactions, undermining digital payment progress and government formalization efforts.
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Key takeaway
New UPI fees (MDR) risk pushing small merchants back to cash, raising transaction friction.
- Step 1 · The triggernew UPI MDR fees increase the cost of accepting digital payments for small merchants
- Step 2 · Knock-onhigher transaction costs prompt small merchants to revert to cash, reducing digital payment volumes
- Step 3 · Reaches youa shift back to cash undermines formalization, increases operational friction, and erodes GST compliance for SMEs
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: Economic Times — Economy
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