This update talks about the cashless UPI payment option which was introduced at fair price shops a few months ago has been withdrawn in Chennai and several other locations.
UPI Payment Option Removed From PDS
Now, these family rations cardholders are being asked to pay only by cash.
The UPI transactions on Paytm and Google Pay applications now incur a 0.5-1.1% interchange fee for transactions exceeding Rs 2,000 per day, following the implementation of revised rules for UPI transactions, said the sources from cooperation department.
The registrar of cooperative societies, N Subbaiyan said, “We have explicitly informed Paytm and other service providers that there should be no additional charge for UPI payments at ration shops. The matter will be looked into.”
For the unawares, these revised rules came into effect from January this year.
The issue caught the attention of the department only a few weeks back, interestingly.
Besides this, there were issues in receiving money through QR codes which were earlier installed by Paytm, as its wallet was banned by RBI from March 16.
Difficulty In Getting Change
According to the sources, the UPI system was discontinued in North Chennai, Kancheepuram, Tiruvallur and other places.
“Initially, we did transactions amounting to about Rs 5,000 to Rs 6,000 daily. However, after restrictions were imposed on operating Paytm wallet, officials gradually discontinued the UPI system and instructed us to collect cash,” said an employee at a ration shop in Korattur.
All this causes consumers difficulty in tendering change as we know that ATMs mostly dispense Rs 500 notes, occasionally Rs 200 notes.
For instance, “When purchasing one kg of sugar for Rs 26, cardholders often handover Rs 500 currency, leading to occasional verbal arguments. However, since the implementation of the UPI system, this was resolved.”
Last year, during September, this digital payment system was implemented across PDS shops in a phased manner.
They have installed QR codes with bank accounts of central cooperative banks.
It cannot be denied that this initiative has brought huge relief to both PDS workers and the general public.
Eatler, there were frequent quarrels over returning change for higher denomination currencies including Rs 500 and Rs 200.
The situation could return as a resident of Korattur, R Rajamanickam said, “I have been using a mobile app to pay for items at the PDS shop during the last two months. However, last week, the staff informed them they would only accept cash for purchasing sugar, pulses and palmolein oil. I went to an ATM to withdraw money at 12.20 pm, but by the time I reached the shop, it was closed for lunch at 12.35 pm. I had to return later to purchase the entitlements,”, said.
