No UPI Day will be observed by mobile phone retailers across the country on October 2, 2026, according to the All India Mobile Retailers Association (AIMRA).
The association says retailers plan to avoid accepting UPI payments to protest the proposed 0.4 percent Merchant Discount Rate (MDR) on certain transactions.
The protest is planned for Gandhi Jayanti. AIMRA Vice President and Delhi-NCR President Tarvinder Singh said retailers will symbolically cover their UPI QR codes with black cloth and avoid accepting UPI payments on the day.
No UPI Day Planned for October 2
AIMRA has called for the nationwide No UPI Day to highlight mobile retailers’ concerns about the proposed MDR on UPI transactions.
The association says the move is aimed at raising concerns about the additional cost for merchants rather than opposing UPI or digital payments.
According to the association, the planned 0.4 percent MDR will apply from October 15 to business UPI transactions above ₹2,000. The source states that person-to-person (P2P) UPI transactions and small payments will not attract this fee.
Retailers Raise Cost Concerns
AIMRA has claimed that small mobile retailers could face a monthly financial burden if MDR is imposed on eligible UPI transactions.
According to a memorandum sent by the association to Finance Minister Nirmala Sitharaman, retailers processing ₹5 lakh to ₹30 lakh through UPI each month could face a net impact of around ₹2,000 to ₹12,000.
The association estimates that the proposed 0.4 percent MDR could create a combined burden of around ₹40 crore per month, or approximately ₹500 crore annually, for small mobile retailers across the country.
These figures are estimates presented by AIMRA in its memorandum and reflect the association’s assessment of the proposed charges.
Demand for Zero MDR on UPI
AIMRA says its demand is for UPI payments to continue under a zero-MDR framework. Tarvinder Singh said the association’s protest is not against UPI or Digital India, but against the additional financial burden that merchants may face.
The association wants the zero-MDR system to continue for UPI payments. The planned October 2 action is intended to draw attention to this demand before the proposed MDR takes effect for eligible transactions from October 15.
