2 hrs ago
Traders Plan ‘No UPI Day’ Over Proposed Merchant Fee
Some trader groups in India plan to hold a “No UPI Day” on October 2.
They want to show their disagreement with a proposed fee on certain UPI payments.
To protest, they may cover their QR codes and payment devices with black cloth.
The proposed fee would apply to some merchant payments above Rs 2,000.
It would be 0.4% of the payment, with a maximum charge of Rs 300.
Smaller payments and some payments to small vendors would still be free.
Traders say even a small fee could reduce their profits.
They are asking the government to cancel the fee before it is planned to begin on October 15.
Trader groups plan to cover UPI QR codes, scanners and sound boxes with black cloth on October 2.
The Maharashtra Chamber of Commerce, Industry and Agriculture has called the nationwide protest against proposed UPI merchant fees.
Under the announced framework, merchants would pay 0.4% on eligible UPI payments above Rs 2,000, capped at Rs 300, from October 15.
Person-to-person payments, transactions of Rs 2,000 or less and payments to qualifying small vendors would remain exempt.
Trader groups say the charge would hurt thin-margin businesses and could weaken India’s move toward cashless payments.
- Who
- Trader groups, including associations representing retailers, distributors, jewellers and edible oil traders, led by the Maharashtra Chamber of Commerce, Industry and Agriculture.
- What
- They plan to observe October 2 as “No UPI Day” by covering UPI payment devices and QR codes, protesting a proposed merchant discount rate.
- Where
- The protest call is nationwide, with participating trader groups in Maharashtra and other areas.
- When
- The protest is planned for October 2, ahead of the proposed levy’s October 15 start.
- Why
- Traders oppose the proposed charge, saying it would increase costs for businesses with thin profit margins and could discourage cashless payments.
Trader Groups
Proposed Payment Framework
Who should bear the cost
Trader Groups
Traders argue they should not bear an additional cost for using digital payments, especially because many businesses operate on thin margins.
Proposed Payment Framework
The announced framework would apply a merchant discount rate to eligible UPI payments above Rs 2,000, while retaining exemptions for smaller and specified transactions.
Effect on cashless payments
Trader Groups
Trader associations say the levy could weaken the push toward cashless transactions and penalise businesses that use a transparent payment system.
Proposed Payment Framework
The framework continues to keep person-to-person payments, smaller merchant transactions and qualifying small-vendor payments free.
Broader industry concerns
Trader Groups
Petrol dealers and stockbrokers have separately raised concerns, while trader groups are considering stronger protests if their demand is not addressed.
Proposed Payment Framework
The petroleum ministry has discussed petrol dealers’ concerns, and the Securities and Exchange Board of India chairperson said stockbrokers’ concerns would be examined.
Key facts
- Protest date
- October 2
- Planned levy date
- October 15
- Proposed merchant rate
- 0.4% on eligible UPI payments above Rs 2,000
- Maximum merchant charge
- Rs 300
- Exempt payments
- Person-to-person payments, merchant transactions of Rs 2,000 or less, and qualifying small-vendor payments
- Small-vendor threshold
- Vendors receiving up to Rs 1 lakh per month
- Capital-market payment rate
- 0.02%, subject to a Rs 300 cap
Sources
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