In a dramatic development, petrol pump owners in Nagpur have announced a possible ban on all digital payment methods—UPI and card transactions—from May 10, 2025. The decision comes in response to an alarming rise in cyber frauds, which have led to blocked or frozen bank accounts across several fuel outlets.
Fraudsters Exploit Digital Platforms
According to the Vidarbha Petroleum Dealers Association (VPDA)nearly 30 petrol pumps have had liens placed on their business accounts, with at least two accounts entirely frozen. These consequences stem from fraudulent transactions made via cloned or stolen UPI IDs and debit/credit cards. Shockingly, while the transactions were criminal in nature, it is the petrol pump owners who are facing the fallout—despite playing no role in the frauds.
Financial Strain on Pump Owners
With accounts frozen and operations restricted, petrol pump operators are struggling to maintain liquidity and business continuity. The VPDA highlights that this situation puts honest retailers at risk and calls into question the safety and fairness of digital payment systems when merchants are left to deal with the financial damage.
Over 60 Percent of Transactions Are Digital
This move, if implemented, could severely affect thousands of daily commuters and transport businesses. More than 60 percent of fuel payments are made digitally today, making such a ban highly disruptive in urban regions like Nagpur.
Statewide Impact Likely if Unresolved
The Federation of All Maharashtra Petroleum Dealers Associations (FAMPEDA) has voiced support for VPDA’s concerns and urged government agencies to intervene quickly. They are demanding clear protective mechanisms for merchants and better fraud resolution policies from banks and payment providers.
A Familiar Crisis
This is not the first time fuel stations have faced disruption. During the ₹2000 note demonetization period, the sudden surge in cash transactions caused operational chaos—something dealers are keen to avoid repeating, this time from the digital side.
Conclusion
Unless swift action is taken, Nagpur could be the starting point for a larger crisis in digital payments at fuel outlets—raising serious questions about accountability, cybersecurity, and merchant protection in India’s cashless economy.
