No UPI Day Protest Called Off After Traders Meet Sitharaman; 0.4% MDR Still Set for October 15

Two major trader and retailer bodies have withdrawn their proposed "No UPI Day" protest which was scheduled for October 2 after meeting Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday.

This was announced after discussions over the proposed Merchant Discount Rate (MDR) on some higher-value UPI merchant transactions.
The All India Consumer Products Distributors Federation (AICPDF) and the All India Mobile Retailers Association (AIMRA) had planned the protest to oppose the proposed 0.40% MDR on eligible person-to-merchant (P2M) UPI transactions above Rs. 2,000.

Traders Want Changes To UPI MDR Framework

As per PTI report, A delegation of around 20 senior trade representatives from different states met Sitharaman at her office in New Delhi. The delegation was led by CAIT Secretary General and Chandni Chowk MP Praveen Khandelwal and included representatives from different retail and trade sectors.

During the meeting, trader bodies asked for a review of the proposed MDR framework. Among their demands was a deferral of the implementation, particularly ahead of the festive season when retail activity and digital payments typically increase.

The associations also asked for a higher threshold for the MDR and called for further examination of the impact of the proposed system on merchants. After the meeting, the associations said they had received an assurance that their concerns would be considered. Based on the discussions, AICPDF and AIMRA decided to withdraw the October 2 protest.

Is UPI MDR Being Scrapped?

No. The withdrawal of the protest does not mean that the proposed MDR has been cancelled.

The current framework provides for a 0.40% MDR on specified P2M UPI transactions above Rs. 2,000, with the implementation scheduled from October 15th. The proposed charge is subject to a cap of Rs. 300 per transaction.

The proposed MDR would not apply to ordinary person-to-person UPI payments. Transactions to merchants up to Rs. 2,000 are also outside the proposed charge, while eligible small merchants have been covered by zero-MDR provisions. Government figures cited in recent reports indicate that around 96% of P2M UPI transactions by volume would be unaffected.

0.4% MDR impact on Merchants

Under the proposed rate, the MDR on an eligible Rs. 3,000 UPI merchant transactions would work out to Rs. 12, while a Rs. 50,000 transaction would attract Rs. 200. The charge would be capped at Rs. 300 for transactions of Rs. 75,000 and above.