Small retailers push back against MDR

India’s small retailers fear a squeeze on digital payments just as festive-season commerce gathers pace. The 0.4% merchant discount rate (MDR) on UPI person-to-merchant transactions above Rs 2,000 has prompted trade bodies to warn that the added cost could nudge merchants back towards cash.

Borne by merchants — consumers are outside its ambit — the charge is capped at Rs 300 for transactions of Rs 75,000 and above and takes effect October 15.