‘No UPI Day’: Traders Suspend Digital Payments Across India Over MDR; FRTWA Warns Of ‘Black Diwali’

Traders observed 'No UPI Day' on Friday, October 2, to protest proposed transaction charges/MDR on UPI payments. Thousands of garment traders, retailers, and shopkeepers participated by suspending UPI transactions for the day. The Federation of Retail Traders Welfare Association (FRTWA) called for the protest, claiming that around 250 trade associations from Gujarat, Maharashtra, and the Mumbai Metropolitan Region took part.

The protest was also joined by associations from other parts of the country. Customers at affected shops reported that many did not bring cash as they were unsure of the impact of the proposed charges. Petrol pump associations stated that they have not completely stopped accepting UPI payments and are waiting for a final decision from the government.

The government is expected to announce its decision by October 15. Many citizens were unaware of the protest, with some paying for goods using cash or cards instead. The All India Consumer Products Federation and the All India Mobile Retailers Association withdrew their call for a 'No UPI Day' following a meeting with Finance Minister Nirmala Sitharaman, who assured them of the government's commitment to promoting digital transactions while protecting the interests of all stakeholders.

The FRTWA said it submitted a memorandum to Sitharaman regarding the concerns over the proposed charges and their potential impact on small retailers, traders, and businesses.