The Confederation of All India Traders (CAIT) has welcomed the Centre’s decision to defer the proposed Merchant Discount Rate (MDR) on select Unified Payments Interface (UPI) transactions. The organisation said the move would protect traders and micro, small and medium enterprises (MSMEs) from additional costs while supporting digital payment adoption during the busy festive and wedding season.
CAIT thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for addressing the concerns of traders at a time when businesses are experiencing increased demand. It described the decision as timely, given the importance of festive and wedding season sales for millions of traders and MSMEs.
According to the traders’ body, the proposed charges could have increased operating costs for merchants, particularly those working with limited profit margins. CAIT also warned that additional transaction expenses could have discouraged businesses from accepting digital payments.
The development follows a meeting held on September 30 at Kartavya Bhawan in New Delhi, where a delegation of around 20 trade leaders, led by CAIT Secretary General Praveen Khandelwal, met the Finance Minister. CAIT said it had also been working with trade associations across the country to bring merchants’ concerns to the government’s attention.
Reacting to the decision, Khandelwal said the organisation supports digital payments but believes the system must remain affordable and sustainable, especially for small businesses.
“We sincerely thank Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for understanding the concerns of traders and taking a positive decision. CAIT supports digital payments, but the system must remain affordable and sustainable for merchants, especially small businesses,” he added.
Khandelwal further said the deferment would improve confidence among traders and strengthen cooperation between the government and the trading community in advancing the Digital India initiative.
“This deferment will strengthen traders’ confidence and reinforce the Government’s partnership with the trading community in building a stronger Digital India,” Khandelwal noted.
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