Bhubaneswar, 18 September (H.S.): Odisha Leader of the Opposition and Biju Janata Dal (BJD) president Naveen Patnaik has raised concerns over the newly announced Merchant Discount Rate (MDR) on certain Unified Payments Interface (UPI) transactions, stressing the need to protect the interests of the common man and small traders.

Patnaik made the remarks while responding to media queries on the controversy surrounding UPI transaction charges after arriving at the Biju Patnaik International Airport in Bhubaneswar on Friday.

Under the new framework, a 0.4 per cent MDR will apply from October 15 to specified person-to-merchant UPI transactions above ₹2,000, while person-to-person transactions will remain free. The government has also said that payments made to small merchants covered under the zero-MDR framework will remain free.

Patnaik said that while changes in the digital payment ecosystem were being discussed, the interests of ordinary citizens and small traders, including shopkeepers, should be safeguarded.

The issue has drawn attention from sections of the retail sector, with some trader organisations expressing concerns that the new MDR could increase costs for businesses operating on thin margins.

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Hindusthan Samachar / Monalisa Panda