MADURAI: The Tamil Nadu Foodgrains Merchants Association has today made an appeal from Madurai to Union Finance Minister Ms.Nirmala Sitharaman to put on hold the proposed 0.4% charges to be levied for UPI transactions of more than Rs.2,000 by the merchants.
“Levying 0.4 per cent charges for the transacted amount is an extra punishment. Already the businessmen are paying so many taxes and this additional charges for UPI payments will add to the burden. So, we request the Union Finance Minister to put the latest announcement of 0.4% charges on hold and get suggestions from all stakeholders, associations and trade bodies before proceeding further,” Mr.S.V.S.S.Velshankar, association president and Mr.S.P.Jeyapragasam, honorary advisor, have appealed through a representation sent to the Prime Minister on September 24th 2026.
They pointed out that National Payment Corporation of India had issued a circular that the receiving merchant need to pay 0.4% for UPI payments and this has come at a time when the business community is already paying their taxes properly and maintaining all the accounts.
“Today, most of the commercial establishments are proprietory in nature and UPI transactions became very common in urban and rural areas. Even though the central government has said that 0.4% charges is not applicable for UPI payments between individuals, it is still a worry for traders and merchants,” the Tamil Nadu Foodgrains Merchants Association has said.
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