Pune school bus operators may pass UPI merchant discount rate charges on to parents from October 15, increasing the cost of payments above Rs 2,000 and potentially affecting families that pay transport fees quarterly or half-yearly.
The Pune Bus and Car Owners Association has decided to make parents bear the additional cost if payment gateways levy the charge on larger UPI transactions, Rajan Junavane, the association’s president, told the Times of India. Since school bus operators commonly collect fees for several months at a time, a single payment may exceed the threshold and attract a higher charge.
“With MDR set to be levied soon, we are urging parents to use other modes of payment. We are keeping the UPI payment facility open, but the additional cost for transactions above Rs 2,000 will have to be borne by the parents,” Junavane said.
The proposed change could alter how school transport fees are paid across Pune. Parents who currently use UPI for convenience may have to factor in an additional transaction cost or shift to other payment methods, depending on the policy adopted by individual bus operators.
The Mumbai-based School Bus Owners Association, which has a nationwide presence, has taken a stricter position. The association has said it will stop accepting school bus fee payments through UPI from October 15 if the charge is introduced. Its president, Anil Garg, asked parents to use cheques or credit cards instead.
“Parents are requested to pay bus fees by cheque or credit card,” Garg said.
Garg said the association had written to the Union finance minister seeking an exemption for school buses, petrol pumps and spare-parts shops. The association wants school buses to be treated as essential services and excluded from the proposed charge.
“We have already emailed the finance minister requesting that school buses, petrol pumps and spare-part shops be treated as essential services and exempted from this charge. If an exemption is not given, we will be forced to stop UPI collection permanently,” Garg said.
The issue places school transport operators and parents on opposite sides of a wider payment question. Operators that accept digital payments may face additional transaction expenses on higher-value collections, while parents may have to pay more or use payment channels that are less immediate and convenient than UPI.
The immediate impact will depend on how payment gateways apply the charge, whether an exemption is granted, and whether individual operators continue accepting UPI. The Pune association has indicated that it will keep the facility open while transferring the additional cost for transactions above Rs 2,000 to parents. The Mumbai association has said it will discontinue UPI collection from October 15 if no exemption is provided.
