Stories
Madhya Pradesh Observes 'No UPI Day': Traders Protest MDR, Congress Joins with Unique Stand.
- •Traders in Madhya Pradesh observed 'No UPI Day' to protest the Merchant Discount Rate (MDR) on UPI payments exceeding Rs 2000.
- •Merchants covered UPI scanners with black cloth, stating over 90% of wholesale grocery transactions are above Rs 2000.
- •Traders fear MDR will increase financial burden on low-margin businesses like groceries, petrol-diesel, and electronics.
- •MDR charges are estimated to burden traders in Bhopal by Rs 663.152 crore and Indore by Rs 2,265 crore annually.
- •Congress protested in Indore by distributing 'No UPI, Only Cash' glasses, opposing the financial burden on small traders.
Key Questions Answered
Traders in Madhya Pradesh are observing 'No UPI Day' as a symbolic protest against the new Merchant Discount Rate (MDR) charge of 0.4 percent on UPI payments exceeding Rs 2000. They covered their payment scanners with black cloth to express dissatisfaction, arguing that the charge will severely hurt thin-margin businesses like grocery, fuel, and electronics, and add a heavy financial burden.
Starting October 16, around 4,700 petrol pumps across Madhya Pradesh plan to stop accepting UPI payments exceeding Rs 2,000. Customers purchasing petrol or diesel above this amount will need to make cash payments due to the extra costs imposed by the new MDR charges.
The new framework introducing a Merchant Discount Rate (MDR) on specified person-to-merchant UPI transactions above Rs 2,000 comes into effect on October 15. Under this framework, general P2M transactions over Rs 2,000 will attract a 0.4 percent MDR charge, while transactions up to Rs 2,000 and all peer-to-peer transfers remain free.
