Bhubaneswar: Traders in Odisha have opposed the Centre’s decision to levy merchant discount rate (MDR) on UPI transactions above Rs 2,000, questioning why they should bear the additional cost and warning that consumers may ultimately end up footing the bill. Trade bodies said they would soon convene a meeting to chalk out their response and take up the issue with the Centre. The proposed move has also sparked a political slugfest, with the BJP and BJD trading barbs over the new digital payment charge regime.Odisha Byabasayee Mahasangh general secretary Sudhakar Panda said traders would raise the issue with the Centre and seek a review of the proposal. “Why should traders be burdened with MDR charges? We fail to understand the rationale behind the move. If the Centre goes ahead with the decision from Oct 15 despite our objections, traders may have no option but to adjust the additional cost by marginally increasing prices of certain commodities,” Panda said.Some traders said they were already exploring ways to minimise the impact of the proposed charge. Biswajit Rout, who runs a medicine shop in Patia, said merchants may encourage customers to split payments to stay below the Rs 2,000 threshold. “Customers can pay Rs 2,000 through one account and the balance through another account or in cash. If the transaction amount is higher, traders will have to look at other options,” he said.Another businessman from Bhubaneswar, Soubhagya Ranjan Dash, said traders would eventually try to recover the additional cost from customers if the proposal was implemented. The proposal has meanwhile triggered a political war of words in the state. BJD spokesperson Lenin Mohanty termed the move “anti-people”, arguing that when UPI was launched in 2016, the Centre had assured users that digital transactions would remain free. “After encouraging people to adopt digital payments on a large scale, the govt is now going back on its promise. Ultimately, the burden will be passed on to consumers,” Mohanty said. He also expressed apprehension that the Centre could, in future, reduce the Rs 2,000 threshold and increase the proposed charge beyond 0.4%.Defending the move, law minister Prithiviraj Harichandan said charges on digital transactions were not unusual, noting that banks already levy fees on several services, including cheque clearing and NEFT transactions. “Introducing charges on certain UPI and digital payment transactions will strengthen the banking system and help compensate banks for the costs incurred in facilitating digital payments,” Harichandan said.He also criticised opposition parties for opposing the proposal without examining its broader economic implications. “In a democracy, the opposition has a responsibility to study and analyse such measures before commenting on them. Whether it is the BJD or Congress, they should first assess the likely impact on the economy and understand its implications for the country’s financial system before rushing to criticise the decision,” he added.