Archive · 1 Oct 2026
October 2 No UPI Day Protest Called Off
Retailers had planned to avoid UPI payments on October 2 to protest a proposed new fee.
The fee is called the Merchant Discount Rate, or MDR.
It would be paid by merchants rather than directly by customers.
Retail groups said the fee could hurt small shops with low profit margins.
Their representatives met Finance Minister Nirmala Sitharaman.
They asked for the fee to start lower and increase gradually.
They also asked for a higher transaction threshold and special treatment for merchant-to-merchant payments.
After the meeting, the groups cancelled the protest, so October 2 is not expected to be a ‘No UPI Day’.
AIMRA and AICPDF withdrew their planned October 2 ‘No UPI Day’ protest.
The protest opposed a proposed 0.4% Merchant Discount Rate on certain UPI transactions.
The proposed MDR would be charged to merchants, not directly to customers.
Trade bodies asked for phased implementation, a higher threshold, and exclusions for merchant-to-merchant payments.
UPI payments are expected to remain available at participating retailers on October 2.
- Who
- The All India Mobile Retailers Association, the All India Consumer Products Distributors Federation, and a trade delegation led by Praveen Khandelwal and Kailash Lakhyani.
- What
- The trade bodies called off their planned ‘No UPI Day’ protest against a proposed Merchant Discount Rate on certain UPI transactions.
- When
- The protest was planned for October 2; the proposed MDR is stated to begin from October 15, 2026.
- Where
- The decision followed a meeting with Union Finance Minister Nirmala Sitharaman.
- Why
- The groups said the proposed charge could increase costs for small retailers and put pressure on already thin profit margins.
Trade bodies and retailers
Proposed MDR framework
Impact on small businesses
Trade bodies and retailers
Retail groups said a 0.4% charge could burden micro, small and medium enterprises, shopkeepers, and independent retailers with thin margins.
Proposed MDR framework
The proposed framework would apply an MDR to specified merchant transactions, although the articles do not state the policy’s justification.
Implementation pace
Trade bodies and retailers
The trade delegation sought a phased rollout beginning at 0.20% in 2026–27 and rising gradually to 0.40%.
Proposed MDR framework
The reported proposal sets the MDR at 0.4%, with the article stating that it would apply from October 15, 2026.
Transactions covered
Trade bodies and retailers
The groups asked for a higher applicability threshold, from the proposed ₹1 lakh to ₹5 lakh, and for merchant-to-merchant transactions to be excluded.
Proposed MDR framework
The article also describes the MDR as applying to specified merchant transactions above ₹2,000, creating a threshold discrepancy in the report.
- Proposed MDR
- 0.4% on specified merchant UPI transactions, according to the report.
- Payer of charge
- The MDR would be levied on merchants, not directly on customers.
- Effective date
- The report states that the proposed MDR is set to apply from October 15, 2026.
- Cancelled protest
- The planned ‘No UPI Day’ protest on October 2 has been withdrawn.
- Retailers’ phased proposal
- Introduce MDR at 0.20% in 2026–27 and increase it by 0.05 percentage points annually until reaching 0.40%.
- Threshold request
- The trade bodies asked to raise the proposed ₹1 lakh threshold for MDR applicability to ₹5 lakh.
- Other requests
- They sought exclusion of merchant-to-merchant transactions and an expert committee to examine sector concerns.