Srinagar, Sept. 18 -- New Delhi- Petrol pump dealers across several states, including Jammu and Kashmir have warned that they may stop accepting UPI payments above Rs 2,000 and switch to cash transactions if the new Merchant Discount Rate (MDR) applicable to fuel purchases is not withdrawn or the sector is exempted.

The warning follows the National Payments Corporation of India's revised UPI framework, under which fuel purchases above Rs 2,000 will attract a flat MDR of Rs 5 from Oct 15. Transactions below Rs 2,000 at fuel stations will continue to carry zero MDR under the notified framework.

The Federation of All India Petroleum Traders (FAIPT) has said dealers may discontinue UPI payments above the threshold if the exemption sought fr...