Archive · 24 Sep 2026
MP Traders Observe No UPI Day Over Proposed MDR
Shopkeepers in Madhya Pradesh held a protest called ‘No UPI Day.’
They covered their payment QR codes with black cloth and asked people to use cash.
They were protesting a proposed fee called the Merchant Discount Rate, or MDR.
The fee would apply to some UPI payments above ₹2,000.
Many reports said shops would reject only payments above that amount, while some Indore organisers planned to reject all UPI payments.
Traders said the fee could hurt businesses that make small profits.
The government said customers would not have to pay an extra fee.
The protest groups said they support digital payments but want the proposed charge reconsidered.
Traders across Madhya Pradesh observed ‘No UPI Day’ on September 23, covering shop QR codes with black cloth and asking customers to pay cash.
Reports differed on the scope: many traders rejected UPI payments above ₹2,000, while Indore organisers said participating shops would refuse all UPI payments.
The protest opposed a proposed 0.4% Merchant Discount Rate on specified person-to-merchant UPI transactions above ₹2,000 from October 15.
The charge would be capped at ₹300 for eligible transactions of ₹75,000 or more, while payments up to ₹2,000 and person-to-person payments would remain exempt.
Trader groups said the MDR could raise costs for low-margin businesses; the government said customers would not be charged an additional fee.
- Who
- Trader organisations across Madhya Pradesh, including groups in Indore, Bhopal, Jabalpur, Gwalior, Ratlam, Neemuch, Mandsaur and Jaora, participated or called for the protest.
- What
- Traders observed ‘No UPI Day’ by covering QR codes, requesting cash payments and, according to differing reports, refusing either all UPI payments or payments above ₹2,000.
- When
- The protest took place on Wednesday, September 23; the proposed MDR was scheduled to begin on October 15.
- Where
- Across Madhya Pradesh, including Indore, Bhopal, Jabalpur, Gwalior, Ratlam, Neemuch, Mandsaur and Jaora.
- Why
- Trader groups opposed the proposed 0.4% MDR, saying it could increase costs for traders and affect low-margin businesses.
Trader Organisations
Government Position
Who bears the cost
Trader Organisations
Traders said the proposed MDR would add financial and operating costs, especially for businesses with thin margins, and some said the burden could ultimately affect consumers.
Government Position
The government said customers would not be charged any additional amount for making the affected payments through UPI.
Purpose of the protest
Trader Organisations
Trader groups said they support UPI and digital payments but oppose the additional merchant charge, which they want withdrawn or reconsidered.
Government Position
The proposed framework would retain UPI payments while applying a 0.4% MDR to specified person-to-merchant transactions above ₹2,000.
Scope of payment refusals
Trader Organisations
Some Indore organisers called for rejecting all UPI payments, while other reports described traders refusing only payments above ₹2,000; participation was described as voluntary.
Government Position
The reported framework exempts UPI payments up to ₹2,000 and person-to-person payments from MDR, while no government response to the protest was specified in the articles.
- Protest
- ‘No UPI Day’
- Locations
- Madhya Pradesh, including Indore, Bhopal, Jabalpur, Gwalior, Ratlam, Neemuch, Mandsaur and Jaora
- Proposed MDR
- 0.4% on specified person-to-merchant UPI transactions above ₹2,000
- Maximum charge
- ₹300 for eligible transactions of ₹75,000 or more
- Effective date
- October 15
- Indore participation
- Nearly 125 business organisations were reported to have participated
- Government position
- Customers would not be charged an additional amount for the affected UPI payments
Sources
Madhya Pradesh Traders Observe ‘No UPI Day’: Shopkeepers In Bhopal, Indore Reject Payments Above ₹2,000 Over MDR Charge | VIDEO
Traders in MP observe 'No UPI Day', cover QR codes with black cloth
Indore Traders Observe ‘No UPI Day’, Cover QR Codes To Protest 0.4% Merchant Charge
Traders in MP observe ‘No UPI Day’, cover QR codes with black cloth
