Traders Call For ‘No UPI Day’ On October 2, Know- What Will Happen To QR Codes?
Mumbai: Traders plan to observe October 2 as “No UPI Day” to oppose the proposed merchant discount rate (MDR) on UPI payments. They plan to cover QR codes, scanners and sound boxes with black cloth. Nationwide call The Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) has called for the protest. Its president, Ravindra Mangave, said trader groups would also participate. MACCIA…
Mumbai - Retail traders are planning to observe October 2 as a "No UPI Day" to protest the proposed merchant discount rate (MDR) on UPI payments. The Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) has called for the nationwide protest, with its president Ravindra Mangave stating that trader groups will join in. MACCIA, along with its 500 affiliate associations, plans to meet Maharashtra's chief minister.
Under the proposed framework, merchants would pay an MDR of 0.4 percent on eligible UPI payments over Rs 2,000, capped at Rs 300. However, person-to-person payments and transactions of Rs 2,000 or less would remain free. This exclusion includes vendors receiving up to Rs 1 lakh per month. Traders argue that the charge would negatively impact businesses operating on tight margins.
Mangave noted that petrol pump dealers have separately requested an exemption for transactions above Rs 2,000 due to their thin margins. Officials from the petroleum ministry met with the All India Petroleum Dealers Association to discuss their concerns. Additionally, stockbrokers have raised questions about the levy on fund transfers, with Sebi chairperson Tuhin Kanta Pandey saying the regulator will consider their concerns.
The edible oil traders' federation president, Shankar Thakkar, stated that digital payments provide a clear record from customer to supplier. He argued that imposing a charge could penalize businesses for using a transparent system. The associations plan to consider stronger protests if the government does not address their demand, expressing a desire to withdraw the proposed charge.
They believe it could hinder the push towards cashless transactions. The action comes ahead of the scheduled start date of the levy on October 15.
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