UPI payment method change from October 15: Will you have to pay cash for gas cylinders?

With charges set to apply to certain select merchant UPI transactions exceeding ₹2,000 starting October 15, the question arises: will this impact payments for LPG gas cylinders?

LPG cylinders are widely used across the country; if your household uses one, this information is crucial for you. Nowadays, most people prefer digital payments, and cash usage has declined compared to the past. If you currently pay for cylinder deliveries via UPI, you might have to switch to cash payments in the future.

MDR to be implemented from October 15

Starting October 15, a rule imposing charges on UPI payments exceeding ₹2,000 in specific categories will come into effect. Notably, LPG cylinders could fall within this scope. This means that if a customer pays for an LPG cylinder delivery via UPI on or after October 15, a flat MDR (Merchant Discount Rate) of ₹5 could be applied. Following this proposal, LPG customers are concerned about whether this will affect the cylinder payment system.

Will MDR apply to domestic cylinders?

If you use domestic LPG cylinders, you likely know that their price ranges between ₹900 and ₹1,100. Since MDR applies to UPI payments exceeding ₹2,000, it is not yet entirely clear whether it will be levied on domestic LPG cylinders.

Will the customer have to pay the MDR?

The biggest question is: if an MDR of ₹5 applies to an LPG cylinder transaction, does the customer have to pay it? The answer is no. This charge will not be borne by the customer but by the merchant (the shopkeeper or gas agency).

Will MDR apply to commercial cylinders?

Regarding commercial cylinders used in restaurants, dhabas, and hotels, the price ranges from ₹2,700 to ₹2,950. Since the cost exceeds ₹2,000, MDR (Merchant Discount Rate) charges are likely to apply.

Will gas cylinders have to be purchased using cash?

The biggest question now is whether cylinders will have to be bought with cash if MDR is implemented.
If the implementation of MDR affects LPG payments, gas agencies might opt ​​to accept cash payments instead of UPI.
It is important to note that UPI payments will not necessarily be stopped altogether; that is not the case.
The exact manner in which charges will be applied to domestic cylinder payments needs to be clarified further.

Points for LPG customers to keep in mind

First, LPG consumers should check the payment methods accepted by their LPG agency before October 15.
Also, inquire whether cash payment will be mandatory at the time of cylinder delivery.
If you are paying via UPI, keep a screenshot of the transaction for your records.
Do not pay an extra ₹5 charge unless there is clear information justifying it.