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

Mobile phone retailers in India are set to stage a protest against 0.4% Merchant Discount Rate (MDR) charges on UPI transactions on October 2. The event, dubbed "No UPI Day," aims to bring attention to the concerns of mobile retailers with regard to the new fee, which is scheduled to be implemented from October 15. AIMRA, the industry body representing mobile retailers, is leading the initiative.

Tarvinder Singh, AIMRA Vice president and president for the Delhi NCR region, announced the protest plans, stating that retailers will mark the day by covering UPI QR codes with black cloth and refusing to accept UPI payments on Gandhi Jayanti. According to a representation from AIMRA to Finance Minister Nirmala Sitharaman, the mandatory MDR on UPI transactions will result in a significant financial loss for small retailers.

Processing UPI transactions of ₹5 lakh to ₹30 lakh monthly at a 0.4% MDR rate could cause a monthly net loss of ₹2,000 to ₹12,000, leading to a considerable reduction in net income.

AIMRA estimates that the 0.4% MDR will impose an unsustainable financial burden of around ₹40 crore per month and nearly ₹500 crore per year on small mobile retailers across India. Despite the protests against the new charges, AIMRA emphasizes that the issue is not directed against UPI or Digital India but rather focuses on the added financial burden on merchants who accept digital payments.

Singh reiterated the group's demand that UPI merchant payments should continue without any MDR structure to ensure the growth of Digital India remains affordable for the entire retail ecosystem.