Trade Bodies Plan ‘No UPI Day’ on October 2 Over New MDR Levy
Trade bodies across India plan a voluntary ‘No UPI Day’ on October 2 to protest the proposed 0.4% MDR on UPI transactions above ₹2,000 from October 15.
Trade Bodies Plan ‘No UPI Day’ on October 2 Over New MDR Levy
CNB WORLD TIMES
Traders and business associations across India have announced a voluntary ‘No UPI Day’ on October 2, 2026, to protest the proposed 0.4 per cent Merchant Discount Rate (MDR) on certain UPI transactions above ₹2,000 from October 15.
The protest will coincide with Gandhi Jayanti. Participating traders plan to cover UPI QR codes, scanners, sound boxes and other payment devices with black cloth as a symbolic mark of protest. Customers may be asked to use cash or debit and credit cards for payments on the day. The UPI system itself will remain fully operational.
The Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA) said trader associations in several states have agreed to support the protest. Other organisations, including CAIT, FAIVM, FRTWA, AICPDF, AIMRA and AIJGF, are also expected to participate.
Under the proposed structure, P2M UPI transactions above ₹2,000 will attract an MDR of 0.4 per cent, capped at ₹300. P2P transactions will remain free, while small vendors receiving up to ₹1 lakh per month through UPI under the P2PM category will remain exempt.
Trader bodies say the additional cost could affect businesses operating on thin profit margins and are seeking withdrawal or reconsideration of the proposed charge.
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