Ghaziabad: Akshay Kumar Gupta, owner of Vaishvi Jewellers in Crossings Republic, has put up a poster outside his shop that says only cash will be accepted after Oct 15. “There is nothing you can buy here for under Rs 2,000, so asking customers to pay in cash will only create problems for them. We will have to start charging customers extra. Why should we be the ones paying?” he asked, referring to the introduction of a 0.4% MDR on UPI transactions above Rs 2,000.Traders across Ghaziabad — including Vijay Nagar, Pratap Vihar and Gaushala Fatak — have begun putting up similar posters. The notices read: “UPI Payment Will Not Be Accepted, Due to MDR Charges. We Accept Cash Payments Only.”Traders argue that although the MDR is technically levied on merchants and cannot be passed on separately to customers, the cost will still have to be absorbed by businesses already running on thin margins, or built into their pricing.Gupta said the change could hurt both traders and customers, especially in sectors where transactions above Rs 2,000 are routine. “We are already operating on a shrinking margin, and it’s a highly competitive market. We cannot simply keep absorbing additional costs when margins are under pressure. UPI became popular because it made payments convenient,” he added.Shahnaz, who owns a beauty parlour in the area, has also put up a cash-only notice. She said the charge could hurt demand for her services. “A parlour is a seasonal business and we are already struggling. Facials alone start at Rs 2,000. If customers are asked to arrange cash for such payments, they may think twice before taking the service,” she said.
Many traders said they had invested in QR-based payment systems as UPI use grew
Sanjay Bindal, who runs a grocery store in Vijay Nagar, said the issue was especially relevant to his business. “Our customers are regular buyers. In a grocery store, purchases of Rs 2,000 or more are not unusual. If customers are asked to pay only in cash, it will push them towards other shops where they can use UPI,” he said.Traders said their worry goes beyond the cost of a single transaction — they fear a shift back to cash could undo years of convenience built up around digital payments, particularly for customers who no longer carry large sums of cash. Many said they had invested in QR-based payment systems as UPI use grew, and worry the new charge could push some merchants back toward cash, especially in low-margin businesses.Meanwhile, the district and city Congress units staged a symbolic protest at the residence of MP Atul Garg against the proposed MDR, presenting puja items and fruits worth over Rs 2,000 as a “return gift” for Prime Minister Narendra Modi’s birthday. District president Satish Sharma said the govt should address traders’ concerns over the cost of digital payments, while city president Veer Singh Jatav called for dialogue with the trading community to keep digital payments accessible without imposing undue costs on merchants.
