Petrol pump operators in Tamil Nadu have threatened to stop accepting UPI and other digital payments across the state due to bank accounts being frozen amid cybercrime investigations, according to medianama.com. The Tamil Nadu Petroleum Dealers Association (TNPDA) reported that automated cybercrime systems are flagging their accounts as possible mule accounts, leading to liens and freezes. The association represents roughly 5,000 outlets processing 200-500 digital transactions daily.
The TNPDA president KP Murali sent a letter to Chief Minister C. Joseph Vijay highlighting the issue. He said banks were freezing entire accounts on instructions from cybercrime authorities investigating disputed transactions. Murali described these actions as disproportionate and cited cases where dealers were detained for questioning without being informed about the specifics of the investigations. Digital payments now account for more than half of revenue at some stations, intensifying the impact of the freezes.
This threat to boycott digital payments comes amid growing reliance on UPI and other digital methods in the retail fuel sector. The move could disrupt daily transactions at thousands of outlets and affect consumer convenience. The situation underscores challenges in balancing cybercrime enforcement with business operations in sectors increasingly dependent on digital payments. The TNPDA’s letter to the Chief Minister seeks relief and intervention to resolve the issue.
The TNPDA’s letter to the Tamil Nadu Chief Minister requests a meeting and relief measures for dealers affected by the account freezes. The association’s roughly 5,000 petrol pumps process hundreds of digital transactions daily, highlighting the scale of potential disruption if the boycott proceeds.