The Retailers Association of India (RAI) has submit ted a representation to the Hon’ble Finance Minis ter, Prime Minister, and RBI Governor, voicing con cerns about the proposed reintroduction of Merchant Discount Rate (MDR) on UPI and RuPay transactions for merchants with annual turnover above Rs.40 lakh. RAI argues that such a move could reverse the prog ress made in digital payments adoption, particularly by penalising retailers who operate on thin margins. The as sociation proposes a flat fee of 25 paise per transaction regardless of transaction size, citing the minimal cost of UPI processing. In addition, RAI has recommended exploring gov ernment subsidies or tax incentives to help banks cover transaction costs—ensuring a sustainable digital pay ments ecosystem without burdening merchants.