Chennai, August 12, 2026 (Yes Punjab News)
Petrol pump operators across Tamil Nadu have threatened to stop accepting UPI and other digital payments, citing concerns over bank account freezes and police action arising from transactions that are later linked to cybercrime complaints.
The Tamil Nadu Petroleum Dealers Association (TNPDA), representing around 5,000 fuel outlets across the state, has sought the intervention of Chief Minister C. Joseph Vijay, warning that risks associated with digital transactions are making it increasingly difficult for dealers to continue providing cashless payment options.
In a letter to the Chief Minister, TNPDA president K.P. Murali said petrol pump dealers were being drawn into cybercrime investigations despite having no role in the transactions other than accepting legitimate payments from customers buying fuel.
The association said petrol stations have no practical means of verifying every customer’s identity or determining whether a UPI payment has previously passed through an account allegedly connected to cyber fraud.
Digital payments account for a significant share of fuel transactions in Tamil Nadu. According to the association, an average petrol station handles between 200 and 500 digital payments a day, while cashless transactions contribute more than half of the revenue at some outlets.
The dealers said problems arise when a payment received at a petrol station is subsequently flagged as part of a cybercrime investigation. Banks may, following directions from investigating authorities, place a lien on the disputed amount or freeze the dealer’s entire account.
The association said such action can severely disrupt fuel stations, which require uninterrupted banking services to purchase fuel, pay employees and meet other operational expenses.
The TNPDA also raised concerns over police action, alleging that some dealers had been taken for questioning during early morning hours without initially being given clear details about the transactions under investigation.
The association maintained that dealers should not be treated as suspects merely because they accepted payments through authorised digital platforms.
It has urged the state government to create safeguards against blanket account freezes and coercive action over transactions outside the control of legitimate merchants.
The dealers warned that if a workable mechanism is not introduced, petrol pumps across Tamil Nadu may be compelled to discontinue UPI and other digital payment facilities and return to cash transactions.
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