Mobile phone retailers to protest against UPI MDR charges on Oct 2

Mobile retailers in India are set to observe "No UPI Day" on October 2 to voice their opposition to a new 0.4% Merchant Discount Rate (MDR) charge on UPI transactions, according to a senior official of the All India Mobile Retailers Association (AIMRA). The government plans to introduce this fee on UPI transfers exceeding Rs 2,000 from October 15, while P2P transactions and small payments will remain unaffected.

AIMRA Vice President and Delhi NCR regional president Tarvinder Singh announced the protest, stating that retailers will mark the day by covering UPI QR codes with black cloth and declining UPI payments on Gandhi Jayanti. The association has submitted a representation to Finance Minister Nirmala Sitharaman, arguing that the new MDR will result in a monthly loss of Rs 2,000 to Rs 12,000 for small merchants processing Rs 5 lakh to Rs 30 lakh via UPI, eroding a significant portion of their net income.

AIMRA estimates the 0.4% MDR will impose an unsustainable burden of around Rs 40 crore monthly and Rs 500 crore annually on small mobile retailers across the country. The association insists that UPI should remain zero MDR for the growth of Digital India, emphasizing that this protest is not against UPI or Digital India, but rather a concern over the added financial strain on merchants who accept digital payments.