The discussion around charges on UPI payments above ₹2,000 has created concern among Delhi traders. From Sadar Bazaar to Chandni Chowk, markets fear higher business costs.
Moreover, trader groups said digital payments became an important part of daily commerce. They believe additional charges may affect small and large businesses.
Traders Worry About Higher Costs
Paramjit Singh Pamma, president of Sadar Bazaar Bari Market Traders Association, said UPI became a simple payment option. He explained that millions of traders and customers use this system regularly.
According to Pamma, small and medium businesses already operate with limited profits. Therefore, charges on larger digital payments could directly reduce their earnings.
He added that Sadar Bazaar handles thousands of transactions above ₹2,000 daily. Hence, even a small fee could become a major monthly expense.
Furthermore, Pamma said traders support Digital India and cashless payments. UPI helps customers pay easily and reduces cash handling issues for sellers.
However, he questioned adding financial pressure after encouraging businesses to adopt digital payments. He urged the government to consider ground realities before making final decisions.
Traders Fear Monthly Burden From Small Charges
Bhagwan Bansal, general secretary of Delhi Hindustan Mercantile Association, Chandni Chowk, spoke to ABP Live about the proposed charges.
He said people gradually moved from cash payments toward digital methods. Platforms like Paytm and UPI supported this transition.
According to Bansal, merchant transaction charges could increase business expenses. He estimated that repeated payments could create an additional daily cost of ₹300-400.
Moreover, he explained that traders make purchases throughout the day. These include essential items like milk and bread along with other goods.
He added that gold buyers already pay prices, GST, and income tax. An additional UPI surcharge could create more pressure.
Bansal also claimed that traders often do not receive consultation before decisions. He mentioned more than 1,000 GST changes and unresolved trader concerns.
Markets Question 0.4% UPI Charge
Ashok Randhawa, president of Sarojini Nagar Mini Market Traders Association, opposed the proposed 0.4% UPI charge.
He said merchants would pay the fee, not customers. Therefore, the expense would directly affect shopkeepers’ income.
Randhawa explained that traders already manage GST documents, taxes, and other responsibilities. He said business conditions remain challenging.
Furthermore, he referred to rising inflation and reduced purchasing power among customers. He argued that additional charges could increase trader difficulties.
He also commented on Prime Minister Narendra Modi’s birthday, saying traders received a UPI payment tax “gift”.
Traders Warn About Cash Returning
Kuldeep Kumar, general secretary of Federation of Lajpat Nagar Traders Association, expressed concerns over the proposed UPI surcharge.
He said charges on payments above ₹2,000 could increase business costs. According to him, customers might eventually face indirect pressure.
Kumar highlighted that UPI improved transparency in wholesale and retail markets. It also helped reduce cash transactions.
However, traders fear extra charges could slow digital payment growth. Therefore, market organisations requested the government to keep UPI transactions free for traders.
