Sasaram: Small traders in Sasaram have started displaying “cash only” posters at their shops with some claiming that accepting payments through UPI is becoming an additional financial burden. Several shopkeepers near Dharmashala Chowk have stopped accepting UPI payments and are asking customers to make payments in cash.The move comes amid concerns among local traders over charges they associate with the merchant discount rate (MDR) on digital payments, although it has not yet been made operational.The Centre has introduced a 0.4% MDR on specified UPI merchant transactions above Rs 2,000 with the new framework set to take effect from Oct 15. The charge will apply within the merchant payment ecosystem and cannot be passed on to customers. Payments to merchants up to Rs 2,000 and transactions covered under the zero-MDR framework for small merchants will remain free.Shopkeepers said accepting digital payments affects their margins and that they would prefer cash transactions to avoid additional costs.Several shops in the Dharmashala Chowk area have put up stickers and posters informing customers that payments will be accepted only in cash. Traders said the shift was not a rejection of digital payments but an attempt to reduce costs associated with transactions.Vinay Pratap, a footwear shopkeeper, said traders were already paying various taxes, including sales tax, income tax and local body taxes. “If additional charges are imposed on UPI payments, it becomes another financial burden for small traders,” he said.He added that some shopkeepers were therefore considering a return to cash-based transactions, which they believe would be more suitable for their businesses.The development comes as UPI has become a widely used mode of payment among customers and businesses, making the return to cash at some local shops a notable shift in the city’s retail market.
