Is October 2 ‘No UPI Day’? What you need to know as trade bodies, mobile retailers call off MDR protest
The UPI Merchant Discount Rate (MDR) of 0.4% is set to apply from 15 October 2026 on specified merchant transactions above ₹2,000. The charge will be levied on the merchant and not directly on the customer making the UPI payment.
According to a PTI report, the All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF) on Wednesday withdrew their proposed ‘No UPI Day’ protest planned for October 2, after a trade delegation met Union Finance Minister Nirmala Sitharaman.
So, is October 2 (Gandhi Jayanti) still a ‘No UPI Day’? Here’s what customers need to know.
What did the retailers say?
The mobile retailers’ association had earlier announced the ‘No UPI Day’ protest for October 2 to oppose the proposed 0.4% MDR on UPI transactions above ₹2,000. The association said the charge could add to the cost burden for small retailers, according to the PTI report.
“The delegation, led by BJP MP and CAIT secretary general Praveen Khandelwal and AIMRA founder chairman Kailash Lakhyani, submitted a joint representation, seeking deferment of the proposed MDR, a phased implementation and changes in the threshold for its applicability.”
The trade bodies also asked that merchant-to-merchant (M2M) transactions be kept outside the MDR framework. They further sought an expert committee to examine the concerns raised by the retail and distribution sectors.
What have retailers proposed for UPI MDR?
According to the PTI report, the delegation proposed that instead of an immediate 0.40% MDR, the charge be introduced at 0.20% in 2026-27 and increased by 0.05 percentage points annually until it reaches 0.40%.
For example, if a merchant has a ₹20,000 UPI transaction, a 0.20% MDR would amount to ₹40. If the rate rises to 0.25% the following year, the charge would be ₹50, and at 0.30%, it would be ₹60. At the proposed 0.40% rate, the MDR on a ₹20,000 transaction would be ₹80.
“It also sought to raise the proposed ₹1 lakh threshold for MDR applicability to ₹5 lakh, saying the move would take into account the transaction patterns of merchants,” PTI reported.
What concerns have retailers raised?
According to the PTI report, Sitharaman heard the concerns raised by the delegation and assured the representatives that the issues would be considered and addressed.
Following the meeting, AIMRA and AICPDF decided to withdraw the October 2 protest. AIMRA had said the proposed MDR could put pressure on the “already thin” profit margins of micro, small and medium enterprises, shopkeepers and independent retailers that use digital payments for their daily transactions.
So, is October 2 a ‘No UPI Day’?
No. The proposed October 2 protest has been called off.
Therefore, customers should not assume that UPI payments will be unavailable at mobile retailers or other participating businesses because of the proposed protest. However, customers can check with the respective merchant before making a payment if they have any concerns.
Disclaimer: This is provided for informational purposes only. Please refer to the official website for the latest updates.
