Archive · 3 Oct 2026
Traders Suspend UPI Payments Over Proposed Charges, Threaten Black Diwali
Some shopkeepers in India stopped accepting UPI payments for one day.
They were protesting possible charges on UPI transactions.
The traders said these charges could hurt small shops and businesses.
The protest was called “No UPI Day” and took place on October 2.
Some customers arrived without cash and had to find other ways to pay.
Petrol pumps mostly kept accepting UPI while waiting for a government decision.
Some trade groups canceled their planned protest after meeting Finance Minister Nirmala Sitharaman.
The traders said they may hold a larger protest around Diwali if the charges are not withdrawn by October 15.
The Federation of Retail Traders Welfare Association said thousands of traders observed “No UPI Day” on October 2.
FRTWA president Viren Shah said about 250 associations from Gujarat, Maharashtra and the Mumbai Metropolitan Region participated.
Some retailers asked customers to transfer money to personal accounts, while petrol pumps continued accepting UPI payments pending government clarity.
Several trade groups withdrew their proposed protest after Finance Minister Nirmala Sitharaman assured leaders the government would protect stakeholders while promoting digital payments.
FRTWA warned of a possible “Black Diwali” if proposed UPI charges are not withdrawn by October 15.
- Who
- The Federation of Retail Traders Welfare Association, other trade associations, retailers and shopkeepers participated; the government was represented by Finance Minister Nirmala Sitharaman.
- What
- Traders suspended or limited UPI payments to protest proposed transaction charges, also called MDR.
- When
- The protest took place on Friday, October 2; traders sought a decision by October 15.
- Where
- The protest involved parts of India, including Gujarat, Maharashtra and the Mumbai Metropolitan Region.
- Why
- Traders said proposed UPI charges could impose a financial burden on small retailers, traders and other businesses.
Trader Opposition
Government and Continued UPI Use
Proposed transaction charges
Trader Opposition
FRTWA and participating traders opposed the proposed UPI charges, saying they could financially affect small retailers, traders and businesses.
Government and Continued UPI Use
The government said it remained committed to promoting digital transactions while safeguarding the interests of all stakeholders, but the article does not report a final decision on the charges.
Whether to stop accepting UPI
Trader Opposition
Many retailers and shopkeepers suspended UPI transactions for the day as part of the protest.
Government and Continued UPI Use
Petrol dealers continued accepting UPI payments while waiting for government clarity, and some trade groups withdrew their proposed protest after meeting the finance minister.
Possible next steps
Trader Opposition
FRTWA president Viren Shah warned that traders could observe a “Black Diwali” if the proposed charges were not withdrawn by October 15.
Government and Continued UPI Use
Petrol pump representatives said they expected a government decision by October 15 and indicated that UPI payments would remain operational at petrol pumps until then.
- Protest name
- “No UPI Day”
- Date
- Friday, October 2
- Organiser
- Federation of Retail Traders Welfare Association
- Reported participation
- About 250 trade associations from Gujarat, Maharashtra and the Mumbai Metropolitan Region, according to FRTWA president Viren Shah
- Government meeting
- A delegation of around 20 senior trade leaders met Finance Minister Nirmala Sitharaman
- Deadline cited by traders
- October 15
- Potential escalation
- FRTWA warned that traders could observe a “Black Diwali” if the charges are not withdrawn