UPI Payments Banned At Govt Ration Shops In This State! Find Out Why?


Sheetal Bhalerao

Sheetal Bhalerao

Mar 22, 2024


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update talks about the cashless UPI payment option which was introduced at fair price shops a few months ago has been withdrawn in Chennai and several other locations.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 Payments Banned At Govt Ration Shops In This State! Find Out Why?

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.


Sheetal Bhalerao
Sheetal Bhalerao
  • 553 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online