Fuel purchases made at petrol pumps via UPI to qualify for flat concessional MDR of ₹5 for payments over ₹2,000

Fuel purchases have been provided a special concessional MDR structure to ensure that petrol pump operators can continue accepting UPI payments at low and predictable costs. Importantly, these charges are significantly lower than those applicable on other payment instruments such as credit cards, debit cards and wallets.

What customers need to know

• UPI continues to be free for Consumers

• Customers to pay only for the fuel they buy

What petrol pump operators need to know

• No MDR on fuel payments up to ₹2,000

• If a customer pays up to ₹2,000 through UPI, the MDR will be zero and petrol pumps will not have to pay any fee on these transactions.

• Only ₹5 MDR on fuel payments above ₹2,000

• For fuel payments above ₹2,000, petrol pumps will have to pay a flat ₹5 MDR.
• The charge stays the same no matter how large the bill is.
• Whether the fuel bill is ₹2,500, ₹5,000 or ₹10,000, the MDR will still be only ₹5.
• This is much lower than the charges usually paid on credit cards, debit cards and wallets.