Traders' associations call off ‘No UPI Day’ protest on 2 October after assurance from Finance Minister Sitharaman

Traders' bodies have called off their “No UPI Day” protest which was proposed to be held on Friday, 2 October, following a meeting with Union Finance Minister Nirmala Sitharaman today, PTI reported citing officials.
The All India Mobile Retailers Association (AIMRA) and All India Consumer Products Distributors Federation (AICPDF) in an official statement on Wednesday, 30 September said the ‘No UPI Day’ protest has been called off.
Notably, the mobile retailers' association had called for ‘No UPI Day’ on October 2 to protest against the Centre's proposed 0.4% merchant discount rate (MDR) on UPI transactions above ₹2,000, set to come into effect from 15 October, stating that the charge would put additional burden on small retailers.As part of the protest, retailers across the country were proposed to cover their UPI QR codes, sound boxes and payment scanners with a black cloth to symbolically register their opposition to the MDR charge, the association said in a statement.
‘No UPI Day’ protest called off: What happened?
The trade delegation led by BJP MP and Confederation of all Indian Traders (CAIT) secretary general Praveen Khandelwal, and AIMRA founder chairman Kailash Lakhyani, submitted a joint representation to the minister.

They sought deferment of the proposed MDR and a phased implementation and changes in the threshold for its applicability, it added.
They also sought exemption of merchant-to-merchant (M2M) transactions from the MDR, and
The constitution of an expert committee to examine the concerns of the retail and distribution sector.

The delegation proposed that instead of an immediate 0.40% MDR, the charge be introduced at 0.20% in FY2026-27 and increased by 0.05 percentage points annually until it reaches 0.40%.
Trade bodies have also sought raising the proposed ₹1 lakh threshold for MDR applicability to be raised to ₹5 lakh, saying the move would take into account the transaction patterns of merchants, as per the statement.

PTI reported that Sitharaman heard concerns raised by the traders and assured the delegation that the issues would be duly considered and addressed. Following the assurances, AIMRA and AICPDF decided to withdraw their protest, the associations said in the release.
AIMRA had earlier said the proposed MDR would affect the “already thin” profit margins of micro, small and medium enterprises (MSMEs), shopkeepers and independent retailers, who rely on digital payments for day-to-day transactions.NPCI releases MDR framework: What changes?
The National Payments Corporation of India (NPCI) on 15 September announced MDR charge would apply on select UPI transactions, adding that there would be “no impact on any person-to-person transactions”.
As per the official release, 0.4% MDR will be introduced from 15 October on Person-to-Merchant (P2M) UPI transactions above ₹2,000, with charges capped at ₹300 per transaction for transactions of ₹75,000 and above.
A statement from the Finance Ministry reasoned that as UPI will continue to remain completely free for all P2P transactions, irrespective of the amount transferred, about “70% of the total transaction value will remain completely outside the MDR framework” and close to 96% of merchant transactions will remain free.

Here's a look at the changes for merchants:

– MDR of 0.4% will apply to P2M transactions above ₹2,000.
– For transactions of ₹75,000 and above, the MDR will be capped at ₹300 per transaction.
– Transactions above ₹2,000 in essential and thin-margin sectors, including railways, telecommunications, insurance, fuel and agricultural inputs, will attract a flat MDR of ₹5 per transaction.
– Payments relating to mutual funds, securities, stockbrokers and dealers will attract an MDR of 0.02%, capped at ₹300 per transaction.
(With inputs from PTI)