Traders Plan UPI Boycott on October 2 Over Proposed Fee on Payments Above ₹2,000
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‘No UPI Day’ on October 2: Traders Protest Proposed 0.4% MDR on Payments Above ₹2,000
New Delhi: Several trader and business organisations have announced plans to observe October 2 as a “No UPI Day” to protest the proposed 0.4% Merchant Discount Rate (MDR) on UPI merchant transactions above ₹2,000.
As part of the protest, traders plan to cover UPI QR codes, scanners and sound boxes with black cloth at shops and commercial establishments. Customers may be asked to use cash or other digital payment methods instead.
Under the proposed arrangement, a 0.4% MDR will apply from October 15, 2026, to eligible person-to-merchant UPI transactions above ₹2,000, with the charge capped at ₹300 per transaction. The government has clarified that customers will not be charged the MDR directly.
The Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) and several other trade bodies have backed the October 2 protest. However, the Confederation of All India Traders (CAIT) has denied being part of such a proposal, highlighting differences among trader organisations over the planned protest.
Government sources have indicated that discussions with trader associations are expected over concerns surrounding the MDR. The government has also stated that the MDR collected will not go to the government treasury.
