Mumbai: Traders plan to observe October 2 as “No UPI Day” to oppose the proposed merchant discount rate (MDR) on UPI payments. They plan to cover QR codes, scanners and sound boxes with black cloth.
Nationwide call
The Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) has called for the protest. Its president, Ravindra Mangave, said trader groups would also participate.
MACCIA and its 500 affiliate associations intend to meet Maharashtra’s chief minister. Mangave named retail traders, distributors, jewellers and edible oil traders among the groups supporting the action.
What changes on October 15?
Under the announced framework, merchants would pay MDR of 0.4 percent on eligible UPI payments above Rs 2,000, capped at Rs 300. Person-to-person payments and merchant transactions of Rs 2,000 or less would remain free.
Payments to small vendors classified as person-to-person-merchant transactions would also remain exempt. This category covers vendors receiving up to Rs 1 lakh a month.
Traders argue that the charge would squeeze businesses operating on thin margins. AICPDF president Dhairyashil Patil asked why traders should bear the additional cost of digital payments when retailers and distributors help drive adoption.
More pressure points
Petrol dealers have separately sought an exemption. Officials from the petroleum ministry met the All India Petroleum Dealers Association to discuss its concerns.
Stockbrokers have also raised questions about the levy on fund transfers. Sebi chairperson Tuhin Kanta Pandey said the regulator would examine their concerns. The stated MDR for capital-market payments is 0.02 percent, subject to a Rs 300 cap.
Edible oil traders’ federation president Shankar Thakkar said digital payments leave a clear record from customer to supplier. He argued that imposing a charge could penalise businesses for using a transparent system.
The associations say they will consider stronger protests if the government does not address their demand. They want the proposed charge withdrawn and say it could weaken the push towards cashless transactions. The action precedes the levy’s planned October 15 start.
