Stories
Mobile Retailers to Observe 'No UPI Day' on October 2 Over MDR Charges
- •Mobile phone retailers across India will observe October 2 as "No UPI Day" to protest the 0.4% merchant discount rate (MDR) on UPI transactions exceeding –2,000.
- •The government introduced a 0.4% fee on UPI transfers over –2,000 to merchants starting October 15, exempting person-to-person and small payments.
- •The All India Mobile Retailers Association (AIMRA) called for the protest, with retailers symbolically covering UPI QR Codes and refusing UPI payments on Gandhi Jayanti.
- •AIMRA estimates the 0.4% MDR will cause an immediate net monthly loss of –2,000 to –12,000 for small retailers, potentially wiping out a substantial portion of their income.
- •Retailers demand that UPI merchant payments remain under a Zero MDR structure, arguing that digital payments should remain affordable for the entire retail ecosystem to foster Digital India's growth.
Key Questions Answered
Mobile retailers across India plan to observe October 2, 2026, as 'No UPI Day' to protest the government's introduction of a 0.4% Merchant Discount Rate (MDR) on merchant UPI transactions exceeding ₹2,000. Retailers will symbolically cover their QR codes with black cloth and refrain from accepting UPI payments on Gandhi Jayanti.
According to a representation sent by AIMRA to Finance Minister Nirmala Sitharaman, the 0.4% MDR will impose a monthly net loss of ₹2,000 to ₹12,000 for small retailers processing between ₹5 lakh and ₹30 lakh monthly via UPI. This burden is estimated to cost small mobile retailers across India approximately ₹40 crore per month and nearly ₹500 crore annually.
The government has exempted person-to-person (P2P) transactions, small payments, and transactions up to ₹2,000 for merchants from any MDR charges. Additionally, merchants processing up to ₹1 lakh per month through UPI are completely exempt from MDR.
