Indore (Madhya Pradesh): Traders across Indore observed 'No UPI Day' on Wednesday to protest the proposed 0.4% Merchant Discount Rate (MDR) on certain UPI merchant transactions above Rs 2,000. Shopkeepers covered QR codes with black cloth and asked customers to pay in cash, with the protest particularly visible around Rajwada.
Traders warned of a stronger protest if the MDR framework, scheduled to take effect from Oct 15, is not withdrawn, including symbolically "immersing UPI QR codes" in water bodies.
Ahilya Chamber of Commerce President Ramesh Khandelwal claimed traders associated with the campaign in Indore, Bhopal, Jabalpur, Gwalior, Ratlam, Neemuch, Mandsaur and Jaora participated in the protest. He said nearly 125 business organisations took part in Indore.
Khandelwal, who represents Madhya Pradesh on the National Traders Welfare Board, questioned the additional burden on traders. "Traders are not against the government, but their question is, if the money collected from MDR is not going to the government treasury, why is this additional burden being placed on traders?" he said.
Indore Retail Garments Association President Akshay Jain also demanded withdrawal of the proposed MDR, saying additional charges could hurt traders and consumers.
Under the new framework, a 0.4% MDR will apply to specified person-to-merchant UPI transactions above Rs 2,000 from Oct 15. Person-to-person payments remain exempt and customers will not be directly charged the MDR.
