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The Confederation of All India Traders (CAIT), a leading body representing traders across India, on Wednesday said it would support a nominal Merchant Discount Rate (MDR) on higher-value Unified Payments Interface (UPI) transactions if proposed by the government, while stressing that the details of the legislation should be examined before drawing any conclusions.
Speaking to ANI, CAIT Secretary General and BJP MP Praveen Khandelwal said the government would have logical reasons behind bringing any such proposal and expressed confidence that it would ultimately make digital payments more convenient. "Let the Bill come. After the Bill comes, we will find out the solution. But if the government is bringing it, then definitely there will be some logical reasons behind it," Khandelwal said. He said India has emerged as a global leader in digital payments through UPI and added that any proposal should be viewed only after its provisions are made public. "The large number of digital transactions in UPI is a record in the whole world. Once the Bill comes... with my confidence, the Bill will definitely give a lot of convenience to those who pay by digital," he said. Responding to reports that transactions above Rs 2,000 could attract charges, Khandelwal said it is normal for services to carry a fee, while emphasising that smaller transactions should remain protected. "Whenever we avail any kind of service, then there is a charge on that service. The limit up to Rs 2,000 is usually for common people. It should not burden the common man. But if other facilities are being provided... if there is a nominal charge, then I feel that we should give it," he said. Khandelwal also said traders would support such a move if it improves business operations. "Businessmen are not behind giving money anywhere. As long as there is ease of doing business and ease of living," he said. The remarks come after the introduction of the Taxation and Other Laws (Amendment) Bill, which proposes changes to the Payment and Settlement Systems Act. The observations come amid policy discussions following the introduction of the Taxation and Other Laws (Amendment) Bill, 2026, which proposes changes to the Payment and Settlement Systems Act to remove UPI's automatic statutory exemption from MDR. While the proposed legislation does not levy MDR, it would empower the government to notify which digital payment modes remain exempt from merchant charges. (ANI)
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