Panaji: Uncertainty has gripped Goa’s shopkeepers, restaurants and small hoteliers following the Centre’s decision to introduce a 0.4 per cent merchant discount rate (MDR) on UPI payments above Rs 2,000 from Oct 15, with many businesses adopting a wait-and-watch approach until further clarity emerges.While the charge will be levied on merchants and not customers, traders said they were assessing how the new regime would affect narrow margins and customer payment preferences. Some local businesses said they may insist on cash for transactions up to Rs 5,000, particularly if UPI-related costs begin affecting their earnings.Restaurants are among the most concerned. With tourism driving a significant part of Goa’s economy, restaurant operators said UPI has become a preferred payment method for visitors from across India. Any disruption or reluctance to accept digital payments, they fear, could affect the convenience expected by tourists.Some traders, meanwhile, said they already pass on the merchant discount rate applicable to debit and credit card transactions to customers and would continue with the practice.
