Indore Traders Observe ‘No UPI Day’, Cover QR Codes To Protest 0.4% Merchant Charge

Indore traders staged a protest on Wednesday, observing a 'No UPI Day' to voice their opposition to a proposed 0.4% Merchant Discount Rate (MDR) on certain UPI transactions exceeding Rs 2,000. Shopkeepers adorned QR codes with black cloth, urging customers to make payments in cash. The protest was notably prominent near Rajwada.

Merchants warned of a more intense demonstration should the MDR framework, set to commence on October 15, remain in place, even including a symbolic immersion of UPI QR codes in water bodies. Ramesh Khandelwal, president of Ahilya Chamber of Commerce, informed that traders from Indore, Bhopal, Jabalpur, Gwalior, Ratlam, Neemuch, Mandsaur, and Jaora participated in the protest.

Nearly 125 business organizations in Indore took part in the demonstration. Khandelwal, representing Madhya Pradesh on the National Traders Welfare Board, questioned the added expense on traders, asking why the government would impose this burden if the MDR funds did not benefit the treasury. Akshay Jain, president of the Indore Retail Garments Association, also called for the withdrawal of the proposed MDR, stating that additional charges could negatively impact both traders and consumers.

Under the revised framework, a 0.4% MDR will be applied to specified person-to-merchant UPI transactions above Rs 2,000, starting October 15. Peer-to-peer payments will remain free from this charge. However, the controversy surrounding the move was further fueled by a recent incident involving Minister Kailash Vijayvargiya, who made a remark about a body shaming nature towards an Indore councillor, which the minister later claimed was a misunderstanding.