Indian Retailers to Protest UPI MDR on October 2
Indian retailers are organizing a nationwide "No UPI Day" on October 2 to protest the proposed UPI Merchant Discount Rate (MDR). Major retailer associations have called for the protest.
Indian retail traders are preparing for a nationwide protest against the proposed UPI Merchant Discount Rate (MDR). The All India Mobile Retailers Association (AIMRA) and The All India Consumer Products Distributors Federation (AICPDF) have called for a "No UPI Day" on Friday, October 2.
AIMRA has urged mobile retailers across India to temporarily halt the acceptance of UPI payments on October 2. AICPDF has announced its full support, with its network of approximately 4.5 lakh distributors and 1.3 crore retailers expected to participate.
AIMRA is advocating for a fixed, nominal charge for digital transactions instead of the proposed 0.4% MDR. The association argues that the new charge would disproportionately affect retailers operating on thin margins. A representative stated that UPI QR codes will be symbolically covered with black cloth during the protest.
AICPDF estimates that the new MDR framework could impose an additional annual cost burden of ₹7,000 crore to ₹9,000 crore across the FMCG distribution and retail ecosystem. This, they believe, will be a significant burden for a sector operating on very thin margins. The associations emphasize they are not against digital payments but demand fair and sustainable charges.
The new MDR framework, set to take effect on October 15, applies to UPI Person-to-Merchant (P2M) transactions exceeding ₹2,000. This marks a shift from the previous zero-MDR regime for UPI. The government has stated that the new charge will only affect about 4% of merchant transactions.