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

Mobile phone retailers in India are set to observe October 2 as No UPI Day to protest against a new 0.4 percent Merchant Discount Rate (MDR) on UPI transactions, according to a senior official from the All India Mobile Retailers Association (AIMRA). The government introduced this charge on UPI transfers exceeding ₹2,000 from October 15, while exempting person-to-person transactions and small payments.

AIMRA Vice President Tarvinder Singh stated that retailers will cover UPI QR Codes with black cloth and decline UPI payments on Gandhi Jayanti to highlight their concerns. The association claims that the new MDR will result in a monthly loss of ₹2,000 to ₹12,000 for small retailers processing ₹5 lakh to ₹30 lakh monthly via UPI, eroding a significant portion of their net income.

AIMRA estimates that the 0.4 percent MDR will impose a burden of approximately ₹40 crore per month and nearly ₹500 crore annually on small mobile retailers across India. The association insists that UPI merchant payments should remain under a Zero MDR structure to promote the growth of Digital India.