The Department of Financial Services is likely to examine the representation, with the government specifically expected to look at the demand for exempting petrol pumps from MDR charges, sources said.
The Petrol Pump Dealers Association had sought an exemption from MDR charges on UPI transactions. The Petroleum Ministry has also forwarded the association’s demand to the Finance Ministry, sources said.
No final decision has been taken yet on exempting petrol pumps from MDR charges, sources said.
The development comes as a decision has been taken to levy an MDR charge on UPI transactions above ₹2,000 from October 15.
As per the decision, a 0.4% MDR charge will be levied on UPI transactions above ₹2,000. There is also a decision to levy a flat ₹5 MDR charge on such transactions.
The government’s examination of the demand could determine whether select categories of UPI transactions, including those at petrol pumps, are exempted from the proposed MDR charges.The Finance Ministry and Petroleum Ministry are yet to respond to our email seeking their response.