Every fee has a first customer, and on UPI, that customer is about to be the shopkeeper who spent five years training his till to trust a QR code over a cash box.
The Retailers Association of India (RAI) says that trust is now in play, after the government’s move to bring back a 0.4 per cent Merchant Discount Rate on UPI transactions above Rs 2,000 — capped at Rs 300 on anything crossing Rs 75,000.
Consumers are untouched by the fee. Merchants aren’t. And for retailers running on the kind of margins that don’t survive a bad festive quarter, that distinction is academic.
“Small merchants will now think twice about whether to accept cash or UPI,” said Kumar Rajagopalan, CEO of RAI, describing a calculation that plays out at the counter, transaction by transaction, right through the season when it matters most. A large share of festive purchases clear Rs 2,000 — the exact threshold where the fee kicks in.
RAI’s objection isn’t really about the 0.4 per cent. It’s about what happens to the number on the other side of that decision. Every rupee that reverts to cash is a rupee that vanishes from the GST trail — the same trail the government spent the better part of a decade building through UPI adoption. Rajagopalan doesn’t hedge on the contradiction: “This cuts against the government’s own formalisation agenda. UPI acceptance should be incentivised, not taxed.”
A policy built to pull transactions into the light is now handing merchants a reason to push them back into the dark, and RAI wants that irony on the record.
The association’s second argument is more technical, and more pointed: not all UPI is the same UPI. A payment drawn straight from a savings or current account carries none of the risk or interchange cost that a card network charges for — it’s a debit transaction wearing a QR code. A UPI payment riding a credit line is a different animal entirely, with a cost structure that actually resembles the card economy it’s competing against.
RAI’s position collapses the two: charge the credit-linked rail if you must, but a flat fee across all of UPI punishes the exact transaction type — direct, bank-to-bank, fully traceable — that the government should want more of, not less.
“We urge that the government should bear the cost of normal UPI transactions,” Rajagopalan said, “since it repays the government with GST and traceable transactions instead of cash transactions.”
That logic extends one level further, to who funds NPCI itself. RAI’s position is that the infrastructure keeping UPI running nationwide shouldn’t be paid for by shaving margins off the smallest retailers in the country — it should be underwritten by the state that benefits most from the formal transaction trail UPI generates.
“The state gets a formal, traceable transaction it can tax out of every UPI payment,” Rajagopalan said. “It should be paying for the enablement, not passing the bill down to the smallest retailer in the chain.”
RAI says it will raise the matter directly with the National Payments Corporation of India and the Ministry of Finance, pushing for a structure that separates debit-linked UPI from credit-linked UPI — and pairs any merchant charge with incentives substantial enough to keep small retailers inside the formal system instead of handing them a reason to leave it.
The Department of Consumer Affairs has notified the Legal Metrology (Packaged Commodities) Second Amendment Rules, 2026, requiring e-commerce entities that sell imported products to include a searchable and sortable country-of-origin filter in their product listings. The rule, gazetted on 27 April 2026 and amending Rule 6(10A) of the Legal Metrology (Packaged Commodities) Rules, 2011, takes effect from 1 July 2027.
Retailers dealing in imported goods have been advised by the Retailers Association of India to begin coordinating with their technology teams and marketplace partners well ahead of the deadline, given the platform and UI changes the requirement will involve.
The Ahmedabad Municipal Corporation has advised roughly 11,123 restaurants and food business operators in the city to install kitchen CCTV cameras and display the live feed to customers near reception or seating areas, as a hygiene-transparency measure. The advisory is not currently mandatory.
The Retailers Association of India has submitted a representation to AMC’s health department arguing the requirement is unnecessary given existing FSSAI hygiene regulation, and that a live feed does not by itself demonstrate compliance with food-safety protocols. RAI also flagged that many restaurant chains already run CCTV systems for security, that open-kitchen formats already offer visibility, and that public streaming raises employee privacy questions. The association asked AMC to keep the practice voluntary and consult industry before considering it as a mandatory or licensing condition.
Retailers in several states have received show cause notices from Legal Metrology authorities for not declaring a “date of manufacture” on garments and hosiery sold loose or open for inspection, despite an exemption that appears to cover exactly this case.
Rule 26(f) of the Legal Metrology (Packaged Commodities) Rules, 2011, inserted in 2022 and effective since January 2023, requires such products to carry only the manufacturer’s details, country of origin, consumer care contact, size and MRP, not a manufacture date.
The Retailers Association of India has written to Ashutosh Agarwal, Director of Legal Metrology at the Department of Consumer Affairs, seeking a central clarification to state enforcement officers to standardise implementation. RAI said divergent state-level interpretation of the same central rule was creating regulatory confusion and unfair penalties for retailers already in compliance.
A Retailers Association of India delegation took part in a conference on Legal Metrology Reforms and Effective Implementation, organised by the Department of Consumer Affairs, Government of India, in Lucknow. RAI’s Advocacy Committee Chairperson, Jyothi V.K., made a detailed presentation on the key challenges retailers face in implementing Legal Metrology regulations, which was well received by government officials present.
Jyothi said simpler regulations, a reduced compliance burden and greater trust between government and business could meaningfully improve ease of doing business while keeping consumer interests protected.
RAI thanked the Department of Consumer Affairs and the Legal Metrology Department for the platform for dialogue, and reiterated its commitment to working with the government toward a simpler, more efficient regulatory environment for retail.
The Government of Chhattisgarh has issued an important amendment to the Chhattisgarh Municipality (Trade License) Rules, 2025 (effective 25 June 2026). Under the new provisions, businesses are no longer required to obtain or renew a municipal trade licence, provided they hold the requisite registrations/licences under the applicable laws (such as Shops & Establishments, FSSAI, Drugs & Cosmetics Act, Factories Act, etc.).
However, the prescribed municipal registration fee will continue to be payable.
Please click on the link to view the order: https://bitly.cx/GPG1
Earlier the New Delhi Municipal Council (NDMC) had waived the requirement for health and general trade licences for restaurants and commercial establishments that already have valid FSSAI and GST registrations.
Please click on the link to view it. https://bitly.cx/2Hdw
This is a significant reform that reduces unnecessary compliance while ensuring businesses remain regulated under the appropriate statutory framework. It is a welcome step towards improving the ease of doing business.
RAI will actively pursue other States to replicate this progressive reform and create a more business-friendly regulatory environment across the country.
At a Lucknow conference on Legal Metrology reform, India's regulators signalled a shift from counting inspection notices to counting compliances achieved, writes Jyothi V K, General Counsel and Sr. Vice President, Aditya Birla Fashion-ABFRL
What does it take to move from regulatory enforcement to regulatory trust? That was the question I carried with me after a day of conversations about the changing face of Legal Metrology in India. As the Chairperson of RAI's Advocacy Committee, I represented the RAI delegation at a one-day conference on Legal Metrology Reforms and Effective Implementation of the Jan Vishwas (Amendment of Provisions) Act, 2026, organised by the Department of Consumer Affairs, Government of India, and the Department of Legal Metrology, Government of Uttar Pradesh, in Lucknow on 3 September 2026.
The conference was presided over by Nidhi Khare, Secretary, Department of Consumer Affairs; Anupam Mishra, Additional Secretary, Department of Consumer Affairs; Ranvir Prasad, Principal Secretary, Government of Uttar Pradesh; and senior officers from Uttar Pradesh, Uttarakhand and Madhya Pradesh.
Reform, perform, transform, inform
The day's discussions centred on the scope of the Jan Vishwas Act and, more significantly, on how the government's approach to implementing it is changing. Khare captured that philosophy in four words: reform the processes under the law, perform by strengthening capabilities including OIML certification, transform how the law is actually implemented, and inform stakeholders through periodic communication.
She spoke with evident pride about India's standing in international legal metrology. India has been a member of the International Organization of Legal Metrology since 1956, and in August 2023 its Legal Metrology Division became the 13th OIML Issuing Authority under the OIML Certification System, a framework that harmonises legal metrology requirements across countries. That recognition strengthened India's role in the wider international system in a way the domestic Legal Metrology Act, 2009, alone could not.
Gatekeeper to facilitator
Mishra traced the longer arc of the reform, describing Legal Metrology's shift from a gatekeeper function to a facilitating one. Among the changes he set out: the decriminalisation of three offences under the Legal Metrology Act, the introduction of improvement notices that let businesses fix specified non-compliances rather than face immediate penalty, more regular engagement with retailers, the replacement of licensing requirements with simpler registration in certain areas, and the establishment of new testing facilities.
One line from the day stayed with me in particular: that the success of enforcement should be measured not by the number of inspection notices issued, but by the number of compliances achieved and consumers protected. That is a genuine shift in regulatory philosophy, and the government backed it with specifics, plans for more GATC laboratories to verify weights and measures, alongside a stated intent to concentrate enforcement on the violations that actually harm consumers: deliberate fraud, short quantity, manipulation and tampering.
RAI at the table
The conference ran several plenary sessions through the day, including one on digital governance in Legal Metrology reform, one on simplifying compliance without weakening consumer protection, and one on moving from a compliance mindset to a trust-based, data-driven one, with participation from RAI alongside FICCI, ASSOCHAM and PHDCCI.
I represented RAI's Advocacy Committee in the session on digital governance, presenting some of the practical challenges retailers face in implementing Legal Metrology rules. The response from government officials was encouraging, and what mattered more was their evident willingness to listen to industry's actual experience on the ground.
On behalf of RAI, I thanked the Department of Consumer Affairs and the Legal Metrology Department for creating space for that dialogue, and for their continuing work on deregulation, ease of compliance and trust-based governance. I also reaffirmed RAI's commitment to working with government toward a simpler, more efficient regulatory environment for retail.
A day that lived up
What struck me most was how genuinely the day tried to translate the philosophy behind Jan Vishwas, literally, people's trust, into the actual mechanics of implementation.
Jyothi V K, General Counsel and Sr. Vice President, Aditya Birla Fashion-ABFRL
Khare's guidance to Legal Metrology authorities was direct: they need to actively drive how the law is implemented, not simply enforce it, and act as catalysts for ease of doing business. Her openness to suggestions, and her invitation to industry to bring real examples and workable solutions to the table, made the exchange feel like a genuine dialogue rather than a formality.
The Government of Uttar Pradesh hosted the day generously, with the kind of warmth Lucknow is known for. Boarding my flight home, I found myself thinking of the city's familiar line: Lucknow aaye hain, toh muskuraiye. After a day that showed regulation moving from enforcement toward facilitation, dialogue and trust, I did.
1. QCO timeline extended by one year
RAI had a series of meetings with officials from DPIIT and BIS, during which we highlighted that a significant portion of the non-BIS-compliant inventory comprises slow-moving stock and would therefore require additional time for liquidation.
Following RAI's representations to DPIIT and BIS, the transition timeline under the Leather Footwear QCO has been extended from 31 July 2026 to 31 July 2027. Please click on the link below to view the notification:
This gives the sector much-needed time to liquidate slow-moving stock amid weak sales sentiment and rising input costs
2. New R&D/Sample import exemption
Manufacturers of leather and footwear products may now import up to 4,500 pairs per year for R&D and non-commercial use, exempt from QCO requirements, subject to: not sold commercially; marked/embossed "NOT FOR SALE"; disposed of as scrap; and year-wise records furnished to the Government on request.
As per the notification issued by the Department of Consumer Affairs, Government of India, all e-commerce platforms offering imported products for sale are required to ensure that product listings include a searchable and sortable filter clearly indicating the Country of Origin.
Please click on the link below to view the notification.
This requirement will come into effect from 1 July 2027.
Members dealing in imported products are advised to initiate necessary coordination with their technology teams for required platform and UI updates, and with marketplace partners, to ensure timely compliance within the stipulated timeline.
We are pleased to inform you that the Government of Tamil Nadu has launched the Traders & Retailers Module on the Tamil Nadu Single Window Portal (TNSWP), aimed at enhancing the ease of doing business in the State.
This module enables traders and retailers to access 22 key regulatory clearances, including Shops & Establishments Registration and local body trade licenses, required to establish and operate their businesses.
To learn more about the portal, please click here:
Access the portal directly:
The portal is available in both Tamil and English, ensuring greater accessibility for businesses across Tamil Nadu.
Members operating in the State of Tamil Nadu are encouraged to explore and adopt this system for streamlined approvals and compliance.
We also request you to share your valuable feedback and suggestions to help improve the platform. Additionally, please write to us regarding any challenges faced while using the portal, so that we can take them up with the concerned authorities.