Small Shop Owners in Srinagar Warn of Digital Payment Cost Burden

Srinagar’s local business community is sounding the alarm over a draft regulation that would introduce a Merchant Discount Rate on UPI payments. Bashir Ahmad, who runs a small grocery store, said the additional charge would add to the mounting expenses his shop faces, from electricity bills to interest on working capital.

He challenged the chief minister’s reassurance that the policy would not affect ordinary people, noting that shopkeepers are themselves part of the everyday consumer base. A fee on digital transactions, he argued, could push buyers back to cash, slowing the adoption of contact‑less payments.

The merchants also reflected on a series of past crises – flash floods, public demonstrations and the COVID‑19 pandemic – that have forced many valley businesses to close temporarily. Introducing a new levy now, they warned, would be an unfair additional strain.

Trader Asif Ahmad echoed these concerns, emphasizing that both merchants and customers rely on UPI for quick, inexpensive transfers. He warned that a surcharge could drive users toward alternative payment apps or cash, weakening the broader digital finance ecosystem. The pair appealed to the central government to keep UPI charges minimal and to reconsider the MDR proposal.