The poster highlighted opposition to the proposed 0.4 per cent MDR on UPI merchant transactions above Rs 2,000, which is scheduled to come into effect from October 15, 2026. Pics/Ashish Raje
Several trade bodies had initially called for October 2 to be observed as “No UPI Day”, with plans in some areas to stop accepting UPI payments or cover QR codes and other payment devices with black cloth
The proposed MDR has prompted concerns among sections of the retail sector, with trader organisations arguing that the charge could add to operating costs and put pressure on merchants with relatively narrow profit margins
Under the new framework, a 0.4 per cent MDR will apply to specified person-to-merchant UPI transactions above Rs 2,000, with a maximum charge of Rs 300. Person-to-person UPI transactions will not attract the charge
The government has maintained that the MDR will be levied on merchants rather than directly on customers. The proposed framework also provides exemptions and lower charges for certain categories of transactions
AICPDF and AIMRA, which had been among the organisations associated with the October 2 protest call, later announced that they would withdraw from the planned “No UPI Day” after meeting Finance Minister Nirmala Sitharaman
The trade bodies sought, among other changes, a deferral of the proposed MDR and an increase in the threshold for the charge. However, the issue remained a subject of debate among retailers and traders, with some organisations continuing to voice concerns over the proposed changes
