Stories
UPI, Online Transactions Halted on October 2: Traders Protest MDR Fee
- •Major trade organizations like FAIVM and the All India Traders' Union declared October 2, Gandhi Jayanti, as a 'UPI-free day'.
- •Merchants will not accept UPI payments on October 2, forcing the public to use cash or cards.
- •Businesses are protesting the 0.4% Merchant Discount Rate (MDR) fee levied on UPI transactions, citing already low profit margins.
- •The Indore Retail Garment Association threatened to destroy UPI QR code machines if the decision is not withdrawn by October 15.
- •From October 15, peer-to-merchant (P2M) UPI transactions above ₹2,000 will incur a 0.40% fee, capped at ₹300.
Key Questions Answered
Major trade organizations like FAIVM and the All India Traders' Union are protesting the government's decision to levy a 0.4% Merchant Discount Rate (MDR) fee on peer-to-merchant UPI transactions above ₹2,000. Businesses argue that this new tax increases their financial burden when profit margins on goods are already very low.
Starting October 15, peer-to-merchant UPI transactions above ₹2,000 will be subject to a 0.40% Merchant Discount Rate (MDR) fee. This fee is capped at a maximum of ₹300 per transaction, regardless of whether the transaction amount is ₹1 lakh or ₹10 lakh.
Organizations supporting the October 2 protest include the Maharashtra Chamber of Commerce (MACCIA), Petrol Pump Dealers' Association, Federation of Retail Traders Welfare Association (FRTWA), All India Consumer Products Distributors Federation (AICPDF), All India Mobile Retailers Association (AIMRA), All India Jewellers and Goldsmiths Federation (AIJGF), and All India Edible Oil Traders Federation (AIEOTF).
