Retailers and apparel makers are warning that prices could rise or festive discounts could shrink after the government introduced a 0.4% Merchant Discount Rate (MDR) on UPI transactions above ₹2,000, effective October 15. Although retailers are prohibited from directly passing the MDR on to consumers as a surcharge, industry executives say higher prices or reduced discounts may be used to offset rising costs. Smaller retailers, already operating on thin margins, could face additional pressure, potentially encouraging more cash transactions.
Source: The Economic Times
