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India merchants protest proposed UPI MDR charges
Indian merchants and trade organizations are protesting the proposed implementation of a 0.4 per cent Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions exceeding Rs 2,000. The new regime, scheduled to take effect on October 15, 2026, targets person-to-merchant (P2M) payments, while person-to-person (P2P) transfers will remain free.
In Madhya Pradesh, traders in cities like Indore, Bhopal, and Gwalior have organized ‘No UPI Day’ protests, with some merchants covering QR codes with black cloth. In Indore, organizers estimated that the boycott affected approximately 50 crore rupees in digital transactions. Petrol pump dealers in Madhya Pradesh have also threatened to stop accepting UPI payments for amounts above Rs 2,000 starting October 16.
Trade bodies, including the Chamber of Trade and Industry (CTI) and the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA), have called for a nationwide ‘No UPI Day’ on October 2. They argue the fee will erode narrow profit margins and could drive a return to cash transactions.
In response, the National Payments Corporation of India (NPCI) and Finance Minister Nirmala Sitharaman have defended the move. The NPCI stated that approximately 96 per cent of merchant transaction volume remains unaffected as transactions under Rs 2,000 will carry zero MDR. Furthermore, the NPCI noted that 75 per cent of the total UPI transaction value is outside the charging framework.
Entities
Ahilya Chamber of Commerce and Industry · Ahilya Chambers of Commerce and Industries · Akshay Jain · Confederation of All India Traders · Dilip Asbe · India · Indore · Indore Retail Garments Association · Madhya Pradesh Petrol Pump Dealers Association · National Payments Corporation of India · Nirmala Sitharaman · Ujjain
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Merchant Discount Rate (MDR) charges on UPI payments will not be passed on to consumers. kalingatv.com · www.india.com
- [● 15 SOURCES] UPI merchant transactions exceeding Rs 2,000 will attract an MDR of 0.4 per cent. kalingatv.com · www.india.com · www.agniban.com · www.hindimilap.com · avnews.in · +10 more
- [● 4 SOURCES] Approximately 96 per cent of person-to-merchant (P2M) transactions will remain unaffected by the new framework. kalingatv.com · www.india.com · www.hindimilap.com · www.sentinelassam.com
- [● 4 SOURCES] MDR does not apply to UPI transactions below Rs 2,000. kalingatv.com · www.india.com · www.sentinelassam.com
- [● 4 SOURCES] The MDR is neither a tax nor a cess and funds will not be deposited into the Consolidated Fund of India. kalingatv.com · www.india.com · www.sentinelassam.com
- [● 2 SOURCES] Approximately 75 percent of total UPI transaction value will remain unaffected by the new MDR policy. www.latestly.com · yespunjab.com
- [● 2 SOURCES] Various trade organizations have announced a nationwide 'No UPI Day' for October 2. hindi.business-standard.com · news.abplive.com
- [● 2 SOURCES] A symbolic 'No UPI Day' in Indore reportedly affected approximately 50 crore rupees in digital transactions. navabharat.com · www.mpbreakingnews.in
- [○ 1 SOURCE] Petrol pump dealers in Madhya Pradesh plan to stop accepting UPI payments above Rs 2,000 from October 16. www.timesbull.com
- [● 4 SOURCES] Traders are protesting by covering QR codes and sound boxes with black cloth. www.agniban.com · navabharat.com · www.bhopalsamachar.com · hindi.business-standard.com
- [● 6 SOURCES] A 0.4 percent Merchant Discount Rate (MDR) will apply to UPI transactions exceeding Rs 2,000 starting October 15. www.hindimilap.com · avnews.in · navabharat.com · www.bhopalsamachar.com · navbharatlive.com · +1 more
- [● 3 SOURCES] Merchants have warned they may return to cash-only transactions if the MDR is implemented. www.agniban.com · avnews.in · www.deccanchronicle.com