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UPI fee may push India back towards cash economy, retailers warn

The Retailers Association of India has warned that the new UPI merchant fee could encourage some small retailers to return to cash transactions.

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The Retailers Association of India (RAI) has raised concerns over the impact of the new Merchant Discount Rate (MDR) on certain UPI transactions, warning that the additional cost could encourage some small retailers to reconsider digital payments.

The concern comes after the introduction of a 0.4% MDR on select UPI transactions above Rs 2,000, with the charge applicable to merchants rather than consumers. The new framework is scheduled to take effect from October 15.

Retailers warn of shift towards cash

Kumar Rajagopalan, CEO of the Retailers Association of India, said the additional cost could make small merchants reconsider whether to accept UPI or cash for certain transactions. The association has warned that this could risk reversing some of the shift towards digital payments.

The concern is particularly relevant for smaller businesses operating on narrow margins, where even a relatively small transaction cost can add to operating expenses.

What the new UPI MDR means

Under the new framework, a 0.4% merchant discount rate applies to eligible UPI transactions above Rs 2,000, subject to a maximum charge of Rs 300 for the applicable category. The MDR is a merchant-side charge rather than a direct fee imposed on consumers.

The government has also stated that banks have been advised to ensure that merchants do not pass the MDR charge on to customers for UPI payments.

The change has prompted concerns from several industry groups, particularly ahead of the festive shopping season, over its potential impact on merchants and the continued adoption of digital payments.

India News

Delhi Building Collapse: Many trapped as 5-storey structure comes down

A building collapsed in Delhi’s Seemapuri area on Wednesday, with several people feared trapped under the debris. Rescue teams have reached the spot.

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A building collapsed in Delhi’s Seemapuri area on Wednesday, with several people feared to be trapped under the debris.

The incident took place in northeast Delhi, where emergency teams were rushed to the site after the collapse was reported.

Rescue operation underway

A search and rescue operation has been launched at the site as authorities work to determine whether people are trapped beneath the debris.

The Delhi Fire Service received information about the collapse at around 3:30 pm and sent fire tenders to the location. An official said some people might be trapped in the debris.

The incident has prompted an emergency response in the area, with rescue personnel working to locate anyone who may be trapped.

Collapse comes a month after Satya Niketan tragedy

The Seemapuri incident comes about a month after a building collapse in Delhi’s Satya Niketan area, where people were trapped after a multi-storey structure came down.

Further details about the Seemapuri collapse, including the number of people trapped and any casualties, are awaited as the rescue operation continues.

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Bhagwant Mann hits back at BJP over CBI search in Sangrur

Bhagwant Mann hit out at the BJP over a CBI search in Sangrur, alleging political targeting and claiming the agency returned empty-handed after a nearly six-hour search.

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Punjab Chief Minister Bhagwant Mann has criticised the BJP over a CBI search at the residence of his officer on special duty (OSD) Rajbir Singh Ghuman in Sangrur, alleging that central agencies are being used against political opponents ahead of elections.

Mann said the CBI action was an indication that elections were approaching and accused the BJP of using agencies such as the CBI and Enforcement Directorate against Opposition leaders or their associates.

“The CBI raid shows that elections have arrived,” Mann said.

The Punjab Chief Minister cited cases involving Jharkhand Chief Minister Hemant Soren and leaders close to former West Bengal Chief Minister Mamata Banerjee while alleging that central agencies have been used ahead of elections. He also said Aam Aadmi Party leaders faced similar action before the Delhi Assembly elections.

Mann says CBI returned empty-handed

According to Mann, the CBI search at Gharachon village in Sangrur lasted nearly six hours.

The Chief Minister claimed that the agency “did not find anything” during the search and returned empty-handed. He alleged that the action was part of a BJP conspiracy to defame him and his government.

Mann also linked the CBI action to the BJP’s anti-drug campaign in Punjab and questioned the political impact of the campaign.

He alleged that the CBI action was politically motivated and intended to create a narrative against the AAP government ahead of upcoming elections.

CBI search at Mann aide’s house

Earlier, a CBI team searched the house of Mann’s OSD Rajbir Singh Ghuman in Gharachon village in Sangrur.

The search triggered a political confrontation involving the ruling AAP and Opposition parties. Representatives of Waris Punjab De and Akali Dal Punar Surjeet gathered in the village and welcomed the CBI team.

After the CBI vehicles left the area, people were seen beating dhols, performing bhangra and showering flower petals on the vehicles carrying the agency officials.

Sources cited in the report said the CBI was investigating allegations involving people accused of causing significant losses to Punjab and looting public money.

BJP hits back at Bhagwant Mann

BJP leader Tarun Chugh criticised the response to the CBI search, calling it an “extraordinary display of shamelessness”.

Taking a swipe at AAP chief Arvind Kejriwal, Chugh said the time for political drama was over and that those responsible would have to answer for money allegedly stolen from the people of Punjab.

“Stop the drama. Let the investigation proceed and let the facts speak,” he said.

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India’s 3-part peace plan to end Russia-Ukraine war explained

India has proposed a three-part truce plan for the Russia-Ukraine war, focusing on energy infrastructure, Black Sea trade and commercial shipping.

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India has proposed a three-part truce plan aimed at reducing hostilities in the Russia-Ukraine war, with the proposal focusing on energy infrastructure, Black Sea trade and commercial shipping.

New Delhi conveyed the proposal to Ukraine during External Affairs Minister S Jaishankar’s visit to Kyiv last month, people familiar with the development said.

Ukrainian Foreign Minister Andrii Sybiha confirmed that Kyiv had received the proposal and described it as the most comprehensive among four international initiatives under consideration for ending the conflict.

What is in India’s three-part truce plan?

India’s proposal seeks action on three key areas linked to the continuing conflict.

First, it calls for an end to attacks on energy facilities and other infrastructure.

Second, the plan seeks to ensure that grain and energy continue to move through Black Sea ports, protecting important commodity flows.

Third, it proposes ending attacks on commercial shipping travelling through the Black Sea.

The proposal therefore brings together energy infrastructure, trade and maritime security as part of a broader ceasefire framework.

How does Ukraine view India’s proposal?

Ukraine has said it is willing to consider different formats for a truce.

Mr Sybiha said any agreement should go beyond combat operations and address attacks on energy and port infrastructure as well as the situation in the Black Sea.

Ukraine has also received ceasefire proposals from Turkey, Egypt and the United States. According to diplomatic sources, India’s plan differs from the Egyptian and Turkish proposals, which primarily focus on maintaining the flow of grain from the Black Sea by seeking an end to attacks on commercial shipping.

The US proposal, meanwhile, focuses on an “energy ceasefire”.

India steps up peace efforts

India has maintained that dialogue and diplomacy are the way forward for resolving conflicts.

Earlier this week, Mr Jaishankar said New Delhi had moved beyond advocacy and was holding practical discussions with both Moscow and Kyiv on reducing hostilities.

He said India had been discussing issues including the safety of Black Sea shipping, grain and energy exports and possibilities for avoiding attacks.

The proposal comes as India seeks a more active role in diplomatic efforts to reduce the intensity of the Russia-Ukraine conflict while continuing its engagement with both sides.

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