‘No UPI’ boards have reportedly been put up at some petrol pumps and CNG stations, with customers being asked to pay in cash for transactions above Rs 2,000.
Even before the new rules on UPI transactions come into effect, signs of resistance to digital payments have started appearing at petrol pumps and shops across several parts of the country.
The issue has reportedly extended beyond a few individual petrol pumps. The rule has either been implemented or is set to be implemented at nearly 5,000 petrol pumps across the state, according to the Madhya Pradesh Petrol Pump Dealers’ Association.
The shift towards digital payments has also been reflected among merchants. The decline in dependence on cash has also coincided with changes in the ATM network. Around 57 crore UPI QR codes have been issued across the country, according to figures presented in Parliament. There are also around 6.5 crore shopkeepers and merchants using UPI. However, a survey found that 41 per cent of merchants did not want to pay the proposed 0.4 per cent charge from their own pockets. Only 17 per cent said they could bear the charge. Among UPI users surveyed, 37 per cent said they might not be able to make a payment if UPI was unavailable at a shop. Sixty-five per cent said they make one or more UPI payments every day, while 59 per cent said they make fewer cash payments. As many as 62 per cent said they now visit ATMs less frequently. 9,000 ATMs were shut down between 2024 and 2026, according to RBI figures. During the same period, cash withdrawals from ATMs fell by 20 per cent.
