Indian Traders Call Off UPI Protest After Meeting Finance Minister

A nationwide protest by Indian traders against proposed charges on UPI transactions has been called off after representatives met with Finance Minister Nirmala Sitharaman. The traders had planned a "No UPI Day" for October 2 to voice concerns over the introduction of a Merchant Discount Rate (MDR) on certain UPI payments.

The All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF) were among the trade groups that met with the minister. They expressed worries that the MDR could negatively impact small and medium-sized businesses, especially during the upcoming festive season. The groups requested a deferment of the charges and proposed exemptions for certain business-to-business transactions.

Finance Minister Nirmala Sitharaman assured the delegation that their concerns would be seriously considered. Following the assurance, the traders decided to withdraw the protest call. Praveen Khandelwal, who led the delegation, stated that dialogue between the government and trader organizations would continue.

The proposed MDR, set to be implemented from October 15, marks a shift from the previous zero-MDR regime for UPI. While banks and payment providers view it as a new revenue stream, retailer groups fear it could discourage UPI adoption. The issue has also drawn attention from fuel dealers and investment platforms facing increased payment processing costs. The Supreme Court has sought responses from the government and the Reserve Bank of India regarding the framework but has not yet stayed its implementation.