Archive · 24 Sep 2026
Traders Plan No UPI Day Against Proposed Merchant Fee
Trader groups in Maharashtra want to hold a “No UPI Day” on October 2.
They plan to cover their QR codes and payment machines with black cloth.
Some reports say they will accept only cash during the protest.
The protest is against a proposed fee on certain UPI payments.
The fee would apply to merchant payments above Rs 2,000 and could begin on October 15.
Smaller payments and some payments to small vendors would remain free.
Traders say the fee could reduce their profits because many businesses already earn small margins.
The government says customers will not have to pay a separate fee for using UPI.
Traders want the proposed merchant charge withdrawn.
Trader groups in Maharashtra plan to observe October 2 as “No UPI Day” by covering QR codes, scanners and sound boxes.
The Maharashtra Chamber of Commerce, Industry and Agriculture has called for the protest, with reports saying about 20,000 traders may participate.
The proposed framework would charge merchants 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.
Traders say the fee would hurt thin-margin businesses and could discourage cashless payments, while the government says customers will not pay an additional UPI fee.
- Who
- Trader groups in Maharashtra, including retailers, distributors, jewellers and edible-oil traders, led by the Maharashtra Chamber of Commerce, Industry and Agriculture.
- What
- They plan to observe “No UPI Day” by covering UPI devices and QR codes and, according to one report, switching to cash-only payments.
- When
- October 2, ahead of the proposed merchant charge’s planned October 15 start; one report identifies the year as 2026.
- Where
- Across Maharashtra, with the broader protest call described as nationwide; Madhya Pradesh traders have also held a similar action.
- Why
- Trader groups oppose the proposed merchant discount rate, saying it would increase costs for thin-margin businesses and potentially weaken cashless payments.
Trader Groups
Government and Payment Framework
Cost of digital payments
Trader Groups
Traders say an additional charge would reduce profits for retailers and other businesses operating on thin margins, and they want the merchant discount rate withdrawn.
Government and Payment Framework
The announced framework would apply the charge only to eligible merchant UPI payments above Rs 2,000, while exempting smaller and specified transactions.
Effect on consumers
Trader Groups
Trader associations argue that higher business costs could eventually affect consumers.
Government and Payment Framework
The Finance Ministry has said customers will not be charged an additional fee for making UPI payments.
Effect on cashless payments
Trader Groups
Traders say charging for a transparent digital payment system could discourage UPI use and weaken the move toward cashless transactions.
Government and Payment Framework
The framework retains free person-to-person payments, smaller merchant transactions and qualifying small-vendor payments.
Wider industry concerns
Trader Groups
Petrol dealers and stockbrokers have separately raised concerns, and trader groups have threatened stronger protests if their demands are not addressed.
Government and Payment Framework
Petroleum ministry officials discussed petrol dealers’ concerns, while the Securities and Exchange Board of India chairperson said stockbrokers’ concerns would be examined.
- Protest date
- October 2, observed on Gandhi Jayanti
- Planned levy date
- October 15
- Proposed merchant rate
- 0.4% on eligible UPI payments above Rs 2,000
- Maximum charge
- Rs 300
- Exempt transactions
- 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
- Reported participation
- About 20,000 traders across Maharashtra
