Madhya Pradesh merchants protest proposed UPI transaction fees

Merchants in Madhya Pradesh, particularly in Indore and Bhopal, are protesting a proposed 0.4 percent Merchant Discount Rate (MDR) on UPI transactions exceeding 2,000 rupees. The new fee, scheduled to take effect on October 15, has prompted business organizations to organize a ‘No UPI Day’ on September 23. During this symbolic protest, traders intend to refuse digital payments for amounts over 2,000 rupees, opting for cash only.

Trade groups, including the Ahilya Chambers of Commerce and the Indore Retail Garments Association, expressed concerns that the additional costs will disproportionately impact low-margin sectors such as groceries, electronics, mobile retail, and fuel. In protest, petrol pumps in the state have also announced they will only accept cash for payments exceeding 2,000 rupees starting October 16.

Data from August shows significant transaction volumes in the region, with Indore and Gwalior recording approximately 14,644 crore rupees in UPI transactions. Merchants argue that the fee will erode their already slim profit margins and are calling for clarity from the government regarding merchant charges and refund processes.