FMCG distributors urge PM to retain zero-MDR regime for UPI payments
The All India Consumer Products Distribution Federation, representing over 4.5 lakh members, has sought continued zero MDR on UPI transactions. It warned that a proposed 0.4% charge and unclear Rs 1 lakh monthly receipt threshold could pressure already thin distributor and retailer margins.
What happened
All India Consumer Products Distribution Federation · FMCG distributors urged the Prime Minister to retain zero MDR on UPI, warning charges would erode thin
Key facts
- Over 4.5 lakh federation members
- Proposed 0.4% MDR
- Rs 1 lakh monthly UPI receipt threshold
What changed
FMCG distributors urged the Prime Minister to retain zero MDR on UPI, warning charges would erode thin retailer and distributor margins. The federation sought exemptions for supply-chain UPI payments, clarity on the Rs 1 lakh threshold, and GST relief on payment charges.
Why this matters
Prepare for potential payment-cost pass-through by modeling a 0.4% UPI MDR impact, clarifying receipt-threshold exposure, and prioritizing low-margin distributor and retailer support.
What to watch
- Finance Ministry, RBI, NPCI, or cabinet clarification on UPI MDR and the proposed Rs 1 lakh monthly receipt threshold.
- Union Budget or fiscal-policy announcements on UPI incentive subsidies and payment-acceptance funding.
- NPCI circulars distinguishing P2M, B2B, distributor, and small-merchant transaction treatment.
- Statements from merchant associations, bank groups, and payment aggregators on proposed MDR rates and exemptions.
- Evidence of distributors imposing digital-payment surcharges, transaction caps, or migration of high-value UPI collections to bank transfers.