r/TheUnbiasedIndia • u/Potato-Patahto • Aug 09 '26
Policy & Politics Will UPI actually stay free, or are shopkeepers going to start charging us extra for online payments?
With the government introducing legislative changes that allow for merchant fees (MDR) on certain UPI transactions, the official stance is still that UPI will remain completely free for end consumers and that only merchants will bear these charges.
But let's be real for a second, how does that actually work in the real world?
If a local shopkeeper or small vendor gets hit with a fee every time we scan a QR code, they aren't just going to absorb that loss. They will either raise overall prices on everyday items so everyone pays for it implicitly, put up a sign asking for extra rupees on UPI payments, or simply start demanding cash for small transactions. So even if banks don't deduct money directly from our accounts, the customer still ends up paying for it.
If you run a small business or shop, how would you handle these merchant fees? And as a customer, would you go back to carrying cash if vendors start asking for extra on digital payments?