Stories
Is UPI Shutting Down on Oct 2? Unpacking the 'No UPI Day' Controversy.
- •The All India Mobile Retailers Association (AIMRA) announced 'No UPI Day' on October 2, 2026.
- •This protest targets the proposed 0.4% Merchant Discount Rate (MDR) on certain UPI merchant payments.
- •UPI will not be shut down nationwide on October 2; it's a protest by mobile retailers affiliated with AIMRA.
- •MDR will apply from October 15, 2026, on selected Person-to-Merchant (P2M) UPI transactions above ₹2,000, capped at ₹300 per transaction.
- •Person-to-Person (P2P) UPI transfers and merchant payments up to ₹2,000 will remain exempt from MDR; AIMRA demands continued zero MDR for merchant UPI.
Key Questions Answered
No, the UPI system will not be shut down nationwide on October 2. 'No UPI Day' is a symbolic protest organized by specific retailer associations like AIMRA, meaning only participating shopkeepers will decline UPI payments, while others will operate normally unless they join the campaign.
Traders are protesting against the proposed 0.4 percent Merchant Discount Rate (MDR) applicable on selected Person-to-Merchant UPI transactions exceeding Rs 2,000, scheduled to start on October 15, 2026. Business associations argue this extra cost harms low-margin enterprises.
No, the MDR fee is not an additional charge levied on customers for using UPI payments. Furthermore, Person-to-Person (P2P) transfers and eligible merchant transactions up to Rs 2,000 remain completely under the zero MDR category.
