No UPI Day Called Off: Traders Meet FM Nirmala Sitharaman Over UPI MDR
New Delhi: The proposed “No UPI Day” protest on October 2 has been called off after a high-level trade delegation met Union Finance Minister Nirmala Sitharaman on Wednesday and raised concerns over the proposed Merchant Discount Rate (MDR) on UPI transactions.
The delegation, led by CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal, included AIMRA Founder Chairman Kailash Lakhyani and representatives of the All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF). Around 20 senior trade representatives from different parts of the country participated in the meeting.
The delegation submitted a joint representation highlighting the concerns of retailers, distributors and other mainline traders over the proposed 0.40% MDR on eligible UPI merchant transactions above ₹2,000, scheduled to come into effect from October 15.
The traders urged the government to defer the implementation, particularly in view of the upcoming festive season when business activity and digital transactions are expected to rise. They also sought a phased introduction of MDR, proposing an initial rate of 0.20% during 2026-27, followed by annual increases of 0.05% until the proposed 0.40% level is reached.
Another major demand was a review of the proposed ₹1 lakh threshold, with the trade bodies seeking its enhancement to ₹5 lakh. They also called for merchant-to-merchant (M2M) transactions to be kept outside the MDR framework, citing their importance to the trading and distribution ecosystem.
The delegation further urged the government to constitute a special expert committee to examine the concerns of the trade sector and recommend an appropriate mechanism for implementing MDR without placing an abrupt financial burden on merchants.
According to Kailash Lakhyani, Finance Minister Sitharaman gave the delegation a patient hearing and assured the representatives that their concerns would be duly considered. Following the meeting and the assurances received, AIMRA and AICPDF decided to withdraw their proposed October 2 “No UPI Day” protest.
The protest had been announced as a symbolic move against the proposed MDR. Participating retailers were expected to refrain from accepting UPI payments on October 2 to highlight their concerns over the additional transaction cost.
Lakhyani clarified that the traders’ campaign was not against UPI or digital payments. Rather, it was aimed at drawing attention to the financial implications of MDR for retailers and distributors, particularly businesses operating on relatively thin margins.
The trade organisations said they remain supportive of digital payments and the continued growth of UPI, while seeking a payment-cost structure that they believe is sustainable for the country’s vast retail and distribution network.
For now, the proposed 0.40% MDR on specified UPI merchant transactions above ₹2,000 is scheduled to take effect from October 15, subject to the applicable framework and exemptions. The latest meeting has therefore shifted the issue from a planned nationwide protest to further discussions between the government and the trade sector.
