Patna: UPI payments above Rs 2,000 are set to attract a Merchant Discount Rate (MDR) from October 15, with fuel transactions, including payments at petrol pumps, among the categories covered by a flat Rs 5 charge. The charge is to be borne by the merchant/payment ecosystem rather than being collected separately from the customer.
What Changes From October 15?
The National Payments Corporation of India (NPCI) has announced an MDR framework for eligible person-to-merchant UPI transactions above Rs 2,000. The standard MDR is 0.4 per cent, while specified categories such as fuel will attract a flat Rs 5 charge.
The new framework does not mean that customers will have to pay an additional Rs 5 whenever they use UPI. The Finance Ministry has stated that customers will not be required to pay a charge for such UPI payments.
For example, if a motorist buys petrol worth Rs 2,500 and pays through UPI, the amount payable by the customer remains Rs 2,500. The applicable MDR is a merchant-side charge and should not be added separately to the fuel bill.
What If A Petrol Pump Asks For Extra Rs 5?
Customers should check the fuel bill and the amount displayed on the UPI payment screen. If a petrol pump asks for an additional Rs 5 specifically because the payment is being made through UPI, the customer can ask for clarification and a proper receipt.
It is advisable to retain the fuel bill, UPI transaction record, date and time of payment, and the name and address of the petrol pump. These details can help if a complaint is subsequently filed.
Where Can Customers Complain?
Consumers can approach the National Consumer Helpline (NCH) for consumer-related grievances. The government helpline can be reached at 1915 or 1800-11-4000, and complaints can also be submitted through its online portal, WhatsApp and other available channels.
Customers can also contact the grievance-redressal system of the oil marketing company operating the petrol pump. Keeping the fuel receipt and UPI transaction details can help establish the circumstances of the payment.
Check Official Rules Before Paying
The new MDR framework applies from October 15, but the exact treatment of individual transactions can depend on the merchant category and applicable payment rules. Reports indicate that eligible small merchants receiving up to Rs 1 lakh a month through UPI QR payments are exempt from the MDR.
Therefore, motorists should not rely solely on viral messages claiming that every UPI payment above Rs 2,000 will automatically cost the customer an extra Rs 5. The relevant distinction is between the merchant-side MDR and any amount actually collected from the customer.
For petrol purchases, customers should pay the amount shown on the fuel bill, verify the UPI transaction before completing it, and retain the receipt. If an additional amount is demanded specifically for making the UPI payment, the customer can seek clarification and use the appropriate grievance-redressal mechanism



















