Patna: “Sir, please pay in cash, not via UPI.” In several shops across Patna, customers are increasingly hearing this request as some traders remove or cover their UPI QR codes amid confusion over merchant charges.
At a clothing store in Maurya Lok, Mukesh Kumar asked whether Google Pay would work. The shopkeeper told him to pay in cash or use a card, saying charges were being imposed on UPI transactions.
Similar reports have emerged from commercial areas including Boring Road, Hathua Market, Kankarbagh, Lohanipur, Kadamkuan, Thakurbari Road, Station Road, Raja Bazar and Bailey Road.
What The UPI Rules Say
The confusion appears to be linked to discussions around the Merchant Discount Rate (MDR), along with claims circulating on social media.
According to NPCI, bank-account-to-bank-account UPI transactions remain free for customers and merchants. This covers the standard form of UPI payment in which a customer pays directly from a linked bank account.
NPCI has also clarified that interchange charges introduced for interoperable PPI wallet transactions apply to the merchant side and do not amount to a charge on customers making ordinary bank-account-based UPI payments.
Certain other UPI-linked payment methods, including RuPay credit cards on UPI, have separate applicable interchange arrangements. NPCI’s guidelines also provide for nil MDR for eligible small offline merchants for transactions up to Rs 2,000 under the specified RuPay credit-card framework.
Traders Concerned About Costs
The uncertainty has nevertheless prompted some traders to reconsider how they accept digital payments.
PK Agrawal, president of the Bihar Chamber of Commerce and Industries, said traders were concerned about the possible financial impact of merchant charges. The exact cost, however, depends on the payment method, merchant category and applicable arrangements rather than applying uniformly to every UPI transaction.
Siddharth Jain, a textile merchant at Maurya Lok Complex, said traders were worried about additional deductions on digital payments.
“We sell goods worth lakhs every month via UPI. If a 1.1% charge or any fixed fee is deducted on every transaction, our profits will be wiped out. For now, we haven’t removed the barcode; we are accepting cash as well,” Jain said.
Vimal Mishra, a bookseller at Dakbungalow Crossing, said merchants could not simply stop accepting UPI because customers had come to depend on it.
“We can’t stop accepting UPI because customers would walk away. However, if someone pays more than Rs 500 using a QR code, we will have to absorb the cost ourselves. The market is already facing a slowdown,” he said.
Some Shops Continue To Accept UPI
Several traders said they were continuing to accept digital payments despite the uncertainty.
“It is better for us to absorb the loss or have customers swipe their cards than to argue with them. The situation isn’t clear yet, so we are accepting UPI as usual without any extra charges,” said Sumant Sikdar, a footwear seller at New Market.
Shiv Kumar, a seller of puja supplies in Kadamkuan, said traders were waiting for greater clarity before deciding whether to remove QR scanners.
“Traders are already reeling from the market slowdown. For now, we have to keep UPI as a payment option. We will decide later whether to remove the scanner,” he said.
Another merchant said digital payments helped maintain transparent business records and that the shop would continue accepting UPI rather than acting on rumours.
Customers Face Confusion
The uncertainty has also left customers unsure about whether they could be charged extra while making routine purchases.
Vikram Kumar said the issue would have little impact on his regular spending if standard bank-account UPI payments continued to remain free.
Homemaker Sweety Mukherjee said she was surprised to find QR scanners covered at several shops in the Naya Tola area.
“I had gotten used to paying via UPI. Shopping will be affected until the situation becomes clear,” she said.
Another homemaker, Anita Singh, said some shopkeepers were telling customers that the government had imposed a new charge.
“If we have to pay an extra 2% on every small purchase, we will be forced to withdraw cash from ATMs again,” she said.
Parveen Ara said any merchant-side charge should not automatically be passed on to customers.
“If a merchant charge is applicable, it is a matter between the merchant and the bank. Demanding extra money from the customer is wrong,” she said.
Advocate Gaurav Govind said the confusion needed to be addressed through clear communication about the applicable rules.
“Shopkeepers may be misunderstanding the provisions, or some may be using the issue as a pretext to charge customers extra. The actual rules should be clarified immediately,” he said.
UPI Remains Widely Used
The scale of India’s UPI network means any uncertainty over merchant payments can quickly affect everyday retail transactions. NPCI data shows that UPI recorded more than 24.5 billion transactions in August 2026, with a total value of about Rs 29.82 lakh crore.
For customers, the key distinction remains between ordinary bank-account-based UPI payments and specific payment instruments that may have separate interchange arrangements. The current confusion in Patna’s markets highlights the need for traders and customers to distinguish between those categories before additional charges are demanded or QR facilities are withdrawn.
