Neutral impactSector
No Proposal From Petroleum Ministry To Scrap Rs 5 Fee On UPI Transactions At Fuel Stations: Sources
NDTV Profit 2 hrs ago·24 Sept 2026, 3:28 pm
Reports indicate that the Petroleum Ministry has not submitted any proposal to the Finance Ministry regarding the removal of the Rs 5 fee charged on UPI transactions at fuel stations. This fee, known as Merchant Discount Rate (MDR), is currently levied by banks for processing digital payments. The Finance Ministry has clarified that this charge is a standard processing cost for payment gateways, rather than a tax imposed by the government.
For investors, this news implies that the government is not planning to intervene to waive this specific fee in the near term. The decision to keep the charge rests with the banking sector and payment processors. Market participants should monitor upcoming policy discussions to see if there is any shift in the government's stance on digital payment charges at retail outlets.
Key takeaways
- Category: Sector.
- Assessed as a significant, market-relevant update.
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