Mobile phone retailers across India plan to observe October 2 as ‘No UPI Day’ to protest the proposed merchant discount rate (MDR) on certain UPI transactions. The protest has been called by the All India Mobile Retailers Association (AIMRA).
Under the new framework, a 0.4% fee will apply from October 15 to eligible UPI merchant transactions above ₹2,000. Person-to-person transfers and small-value payments will remain exempt.
AIMRA has said the additional charge could increase costs for small mobile retailers that rely heavily on UPI payments. The association estimates that a 0.4% MDR could cost small retailers around ₹40 crore a month, or nearly ₹500 crore annually, across the country.
As part of the October 2 protest, participating retailers are expected to cover their UPI QR codes with black cloth and stop accepting UPI payments for the day.
The association has urged the government to retain a zero-MDR structure for UPI merchant payments, saying additional transaction costs could affect the margins of small retailers.
