Mobile phone retailers across the country plan to observe ‘No UPI Day’ on October 2, 2026, to protest the imposition of a 0.4 per cent Merchant Discount Rate (MDR) fee on UPI transactions. A senior official of the industry association AIMRA said that no UPI transactions will be accepted on October 2. The government has introduced a 0.4 per cent fee on UPI payments of more than Rs 2,000 made to merchants from October 15. However, there will be no fee on UPI transactions between two persons (P2P) and small payments below Rs 2,000.
Shopkeepers to cover QR code with black cloth
“AIMRA has called for a ‘No UPI Day’ on October 2, 2026, to highlight mobile retailers’ concerns over the 0.4 per cent MDR charged on UPI transactions,” All India Mobile Retailers Association (AIMRA) Vice President and Delhi-NCR President Tarvinder Singh said in a statement. He said that on the occasion of ‘Gandhi Jayanti’, retailers will symbolically cover the UPI QR code with a black cloth and avoid accepting UPI payments.
Small mobile retailers will face a monthly burden of around Rs 40 crore
According to a memorandum sent by AIMRA to Finance Minister Nirmala Sitharaman, imposing MDR on UPI will directly result in a net loss of Rs 2,000 to Rs 12,000 for small retailers who transact Rs 5 to 30 lakh through UPI every month. This will wipe out a significant portion of their net income. The association of mobile retailers estimates that the 0.4 per cent MDR will impose an unbearable burden of approximately Rs 40 crore per month and approximately Rs 500 crore annually on small mobile retailers across the country.
Demand to continue UPI under zero MDR framework
Tarvinder Singh said, “If we want a Digital India, the MDR on UPI must remain zero. This is not a protest against UPI or Digital India. Our concern is only about the additional financial burden being placed on merchants accepting digital payments. Our clear demand is that UPI should continue under the ‘zero MDR’ framework.”
Traders’ body CAIT denies ‘No UPI Day’ call
Meanwhile, traders’ body CAIT said reports that it called for a nationwide “No UPI Day” on October 2 are factually incorrect and misleading.
CAIT said some trade organisations and regional bodies may have independently announced programmes or protests on the MDR issue.
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