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Mobile retailers plan No UPI Day over proposed MDR
Mobile phone shops plan to stop accepting UPI payments for one day.
They call October 2, 2026, “No UPI Day.”
The protest is against a proposed 0.4% fee on some UPI payments made to businesses.
The fee would apply to merchant payments above ₹2,000 from October 15.
Payments between individuals and small-value merchant payments would not have the fee.
Retailers say the charge could reduce their earnings.
They want UPI payments for merchants to remain free.
The government says the money would be shared by banks and payment companies, not kept by the government.
The All India Mobile Retailers Association plans a nationwide “No UPI Day” on October 2, 2026.
Participating mobile retailers will stop accepting UPI payments and cover their QR codes with black cloth.
The proposed 0.4% Merchant Discount Rate would apply to eligible merchant UPI transactions above ₹2,000 from October 15.
AIMRA estimates the charge could cost retailers about ₹2,000 monthly on ₹5 lakh in UPI transactions and ₹12,000 on ₹30 lakh.
AIMRA wants merchant UPI payments to retain zero MDR, while the government says the charge is not a tax and its proceeds will go to payment-system participants.
- Who
- The All India Mobile Retailers Association and participating mobile phone retailers; the government and payment-system participants are involved in the MDR framework.
- What
- Retailers plan to temporarily stop accepting UPI payments and cover their QR codes on October 2, 2026, to oppose a proposed 0.4% MDR on eligible merchant transactions.
- Where
- Across India, at participating mobile retailers.
- When
- The protest is planned for October 2, 2026; the 0.4% MDR is scheduled to apply from October 15.
- Why
- AIMRA says the proposed charge would increase costs and put pressure on small retailers’ earnings; it is demanding that merchant UPI payments remain under zero MDR.
Retailers’ concerns
Payment-system framework
Whether merchant UPI should carry a fee
Retailers’ concerns
The All India Mobile Retailers Association says merchant UPI payments should remain free because MDR would add pressure to small retailers’ earnings.
Payment-system framework
The government says MDR is a payment-ecosystem charge intended to provide a financial framework for sustaining and expanding payment infrastructure.
Who benefits from the charge
Retailers’ concerns
AIMRA argues that the proposed cost could take away a sizeable share of smaller retailers’ earnings.
Payment-system framework
The government says it will not receive the money; collections will be distributed among participating banks, payment gateways, the UPI app, and the sponsoring bank.
Legal basis of the MDR
Retailers’ concerns
A public interest litigation filed by advocate Anjan Datta alleges that the levy was introduced without adequate statutory safeguards, transparency, or public consultation.
Payment-system framework
The new MDR framework remains in place pending the Supreme Court’s scheduled hearing on the legal challenge.
Key facts
- Protest name
- “No UPI Day”
- Protest date
- October 2, 2026
- Proposed MDR
- 0.4% on eligible merchant UPI transactions above ₹2,000
- Estimated cost at ₹5 lakh monthly volume
- About ₹2,000 per month
- Estimated cost at ₹30 lakh monthly volume
- Up to ₹12,000 per month
- AIMRA demand
- Continue merchant UPI payments under a zero-MDR structure
- MDR distribution
- 40% to customers’ banks, 30% to payment gateways, 20% to the UPI app, and 10% to the sponsoring bank
Quotes
Nirmala Sitharaman
India’s Finance Minister
“The All India Mobile Retailers Association (AIMRA) has called for a 'NO UPI DAY' on October 2, 2026, to highlight the concerns of mobile retailers regarding the 0.4 per cent Merchant Discount Rate (MDR) applicable to eligible merchant UPI transactions.”
livemint.com
“This is not a tax, this is not a cess, this is not even a surcharge. And the collection is not coming to the Consolidated Fund of India.”
livemint.com
Sources
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