Petrol pumps push cash payments ahead of proposed UPI MDR changes

Petrol pumps and CNG stations are reportedly displaying cash-payment notices ahead of proposed October 15 UPI MDR rules. The plan would charge selected merchants 0.4% on UPI payments above Rs 2,000, capped at Rs 300; qualifying fuel-pump transactions would carry a flat Rs 5 fee.

— Source publishedSat, 19 Sept, 2026, 10:01 IST·First seen Sat, 19 Sept, 2026, 10:38 IST·Source Business Today · Latest

What happened

Ahead of proposed UPI MDR rules, petrol pumps and CNG stations are displaying cash-payment notices. Selected merchants may face MDR on UPI payments above Rs

Key facts

  • UPI transactions above Rs 2,000
  • 0.4% MDR for selected merchants
  • MDR capped at Rs 300
  • 4% of selected merchants affected
  • 96% small merchants excluded
  • Rs 1 lakh monthly earnings threshold
  • Rs 5 flat MDR per qualifying petrol-pump transaction

Why this matters

Payment providers and fuel networks may find partnership opportunities in low-cost acceptance, routing, and loyalty solutions that reduce merchant resistance to high-value UPI transactions.

What to watch

  • Official notification, FAQ or gazette language confirming the October 15 effective date and defining eligible fuel-pump transactions.
  • Clarification on whether merchants may surcharge, refuse UPI, impose minimum transaction values, or split bills.
  • UPI transaction-volume and average-ticket changes at fuel merchant categories after notices appear or rules take effect.
  • Public statements from NPCI, RBI, Ministry of Finance, oil-marketing companies and fuel-dealer associations.
  • Growth in card, fleet-card, cash and CNG-station payment share for tickets above Rs 2,000.
  • Evidence of coordinated signage or payment restrictions across major fuel-retail networks.
  • Oil-marketing companies and pump-dealer associations seek written clarification on whether the Rs 5 fee applies per transaction, per customer, or to all qualifying fuel merchants.
  • Forecourts adjust POS flows to prioritize cash, cards, fleet cards and lower-value split UPI transactions.
  • Banks, PSPs and UPI apps prepare merchant-category and ticket-size routing logic, while monitoring transaction migration away from UPI at fuel MCCs.
  • Consumer groups and opposition voices frame payment friction as a rollback of zero-MDR UPI, increasing pressure for a carve-out or postponement.
  • Fleet operators renegotiate payment processes, accelerating use of fuel cards, credit lines and centralized invoicing.