Bhubaneswar: BJD president and leader of opposition Naveen Patnaik on Friday urged the Centre to protect the interests of consumers and small traders amid its move to levy merchant discount rate (MDR) on UPI transactions above Rs 2,000. The ruling BJP defended the proposal, calling it a rational step that would not burden the common man.Speaking to reporters after arriving from New Delhi at the Biju Patnaik International Airport here, Naveen expressed concern over the proposed MDR charges on merchants. “Shopkeepers’ interest should be protected,” he said, without elaborating on the Centre’s move to levy a 0.4% charge on merchants for UPI payments above Rs 2,000.Congress state president Bhakta Charan Das also criticised the govt over the decision. “When we shop, we already pay taxes. Now, the Modi government wants to tax us to pay through UPI. This will hurt consumers, small traders, grocery shop owners and vegetable vendors,” he said. Opposing the MDR charges, Das added, “Why burden millions of people with another tax when banks can handle digital payments?”BJP state spokesperson Anil Biswal said the common man would not be affected by the MDR charges, as consumers would continue to pay no charges for UPI transactions. “UPI transactions below Rs 2,000 will remain free for merchants. As many as 96% of UPI transactions will remain free as they are below Rs 2,000. Only 4% of transactions will be impacted,” he said.Biswal said Naveen’s remarks were misleading. “Opposition parties should refrain from running propaganda against the MDR charges. This decision was taken after approval from the standing committee on finance. The committee has several MPs from the opposition, including Congress leader P Chidambaram. The govt’s move will not impact the common man. The charges will strengthen digital payment infrastructure,” he said.Earlier, traders’ associations in Odisha had opposed the govt’s decision to impose MDR charges on UPI transactions and expressed reluctance to pay them. The petrol dealers’ association has also requested the finance ministry to exempt fuel dealers from MDR charges.
