‘No UPI Day’: MP Traders Protest Proposed 0.4% Charge on Payments Above Rs 2,000

Traders across Madhya Pradesh on Wednesday observed a ‘No UPI Day’ to protest the Centre’s decision to impose a 0.4 per cent merchant discount rate (MDR) on person-to-merchant UPI transactions above Rs 2,000 from October 15.

As part of the campaign, traders covered UPI QR codes at their shops with black cloth and appealed to customers to make payments in cash.

Ramesh Khandelwal, president of the Ahilya Chamber of Commerce and Industry, said traders in Indore, Bhopal, Jabalpur, Gwalior, Ratlam, Neemuch, Mandsaur and Jaora participated in the campaign.

Khandelwal, who represents Madhya Pradesh on the National Traders Welfare Board, said nearly 125 business organisations in Indore participated in the protest.

“Traders are not against the government, but their question is, if the money collected from MDR is not going to the government treasury, why is this additional burden being placed on traders?” he said.

Akshay Jain, president of the Indore Retail Garments Association, urged the Centre to withdraw the proposed 0.4 per cent MDR, saying the move would affect the interests of both traders and consumers.

Jain also warned that if the decision was not withdrawn before October 15, traders would immerse UPI QR-code machines in water bodies as part of their protest.

According to the proposed changes, an MDR of 0.4 per cent will apply to person-to-merchant UPI transactions exceeding Rs 2,000, while transactions up to Rs 2,000 will remain exempt from the charge.

The government has clarified that customers will not have to pay any additional fee for making UPI payments. The Finance Ministry has also said UPI has remained fee-free for customers for nearly six years.

The protest comes amid growing concerns among trader groups over the proposed changes to the digital payments system and their potential impact on businesses that rely heavily on UPI transactions.