Petrol-pump operators in Yamunanagar have reportedly put up banners asking customers not to pay more than ₹2,000 by UPI. The District Petroleum Dealers Association says customers can pay the first ₹2,000 by UPI and must pay any balance in cash. That is a local request reported by The Tribune, not a nationwide government instruction. The Ministry of Finance’s announced framework describes a merchant-side charge for certain larger payments, but says customers are not to pay MDR.
What the Yamunanagar banners ask customers to do
The Tribune reported on 9 October 2026 that petrol-pump operators in Yamunanagar had begun displaying banners asking customers not to make UPI payments above ₹2,000. The paper attributed the action to the District Petroleum Dealers Association and reported that staff had been told to explain the arrangement.
Association president Sachin Gurjar told the paper that customers could pay up to ₹2,000 by UPI and would be asked to pay any remaining amount in cash. The Tribune attributed 218 petrol pumps in the district to the association. Its report also said that some customers continued paying by UPI and employees accepted those payments. The available reporting does not establish that every pump displayed a banner or refused larger UPI payments.
Why the association says it made the request
According to The Tribune, the association cited the cost of accepting larger UPI merchant transactions alongside dealers’ operating expenses and what it described as limited increases in commission. Gurjar said dealer commission had risen by about 20 to 25 paise on one occasion in recent years. These are the association’s stated concerns, not an independent assessment of every dealer’s costs.
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The Ministry of Finance’s 15 September 2026 release distinguishes merchant payments from person-to-person UPI transfers. It says person-to-person payments remain free regardless of amount, while merchant payments up to ₹2,000 remain free of MDR.
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For specified merchant transactions above ₹2,000, the release describes a general MDR of 0.4%, capped at ₹300 for transactions of ₹75,000 and above. For above-₹2,000 transactions in essential and thin-margin sectors, including fuel, it specifies a flat ₹5 MDR per transaction. The Ministry estimated that approximately 96% of merchant transactions would remain unaffected; that is the Ministry’s estimate, not an independently measured outcome.
The Ministry states: “MDR is a charge within the merchant payment ecosystem. It is not a charge on customers making UPI payments.” It also says MDR is not a tax collected by the Government or NPCI, and that banks have been advised to ensure merchants do not pass it on to customers.
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Does the ₹5 fuel MDR mean customers pay ₹5?
No. Under the Ministry’s description, the ₹5 flat MDR applies to specified fuel transactions above ₹2,000 as a charge in the merchant payment ecosystem. The Ministry says customers are not to pay MDR. A pump’s reported request to settle the amount above ₹2,000 in cash is therefore the association’s local response to the framework, not a government direction that customers use cash or pay the MDR.
What the Gazette notification covers—and what it does not
The Gazette notification dated 14 September 2026 specifies UPI transactions up to ₹2,000 as an electronic payment mode for which banks and system providers may not impose charges on the payer or recipient. The reproduced notification text does not set out the above-₹2,000 MDR rates and does not impose a universal duty on all merchants to accept UPI. The Ministry’s separate release is the source for the stated MDR framework.
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How the rules and local request differ
| Question | Yamunanagar association request, as reported | Ministry framework |
|---|---|---|
| Who is speaking? | The District Petroleum Dealers Association, quoted by The Tribune. | The Ministry of Finance, in its 15 September 2026 release. |
| Payments up to ₹2,000 | Customers may pay by UPI, according to association president Sachin Gurjar. | Merchant payments up to ₹2,000 remain free of MDR; the Gazette notification also bars banks and system providers from imposing charges on payer or recipient for UPI transactions up to that amount. |
| Payments above ₹2,000 for fuel | Customers are reportedly asked to pay the balance in cash. | The release specifies a flat ₹5 MDR per transaction for specified above-₹2,000 fuel payments. |
| Who bears MDR? | The association cites costs to dealers as its reason for the request. | The Ministry describes MDR as a merchant-side ecosystem charge and says customers are not to pay it. |
| Person-to-person UPI | Not addressed by the local request. | Remains free regardless of payment amount, according to the release. |
Small-merchant qualification reported by News On AIR
News On AIR reported on 22 September 2026 that NPCI had clarified that merchant transactions up to ₹2,000 continue to have zero MDR, and that merchants with monthly UPI receipts up to ₹1 lakh are not liable for MDR. This is News On AIR’s account of NPCI’s clarification; it does not establish which Yamunanagar pumps meet that monthly-receipts threshold.
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