No UPI Day protest has been called off by two trader and retailer bodies after their representatives met Finance Minister Nirmala Sitharaman over concerns about the proposed UPI Merchant Discount Rate (MDR).
The protest had been planned for October 2.
The All India Mobile Retailers Association (AIMRA) and All India Consumer Products Distributors Federation (AICPDF) withdrew the protest call following the meeting and an assurance that their concerns would be considered.
No UPI Day Protest Called Off After Meeting
The proposed protest was linked to the 0.4% MDR that is scheduled to apply to eligible UPI person-to-merchant transactions above ₹2,000 from October 15.
The trade bodies had raised concerns about the potential impact of the charge on small and medium businesses.
A delegation of around 20 senior trade and retail representatives met the Finance Minister in New Delhi.
The traders sought changes to the proposed framework, including deferment and a phased implementation.
The associations also asked for the proposed ₹1 lakh threshold to be increased to ₹5 lakh and requested that merchant-to-merchant transactions remain outside the MDR framework.
0.4% UPI MDR Still Set for October 15
The withdrawal of the October 2 protest does not mean the proposed MDR has been cancelled.
The 0.4% charge remains scheduled to take effect from October 15 under the announced framework.
The MDR is a charge associated with certain merchant UPI transactions and is paid within the payment ecosystem rather than being a direct charge on ordinary person-to-person UPI transfers.
Under the proposed structure, eligible person-to-merchant transactions above ₹2,000 will attract an MDR of 0.4%, with a maximum charge of ₹300 for transactions of ₹75,000 and above.
What Traders Asked the Government to Change
During their discussions with the government, the trade bodies sought a delay in the proposed MDR rollout because of the upcoming festive season and the expected increase in business activity.
They also proposed introducing the MDR gradually instead of applying the full 0.4% rate immediately.
Another demand was to keep merchant-to-merchant transactions outside the scope of the proposed charge.
The associations further requested an expert committee to examine their concerns and suggest a way forward.
The government has assured the delegation that the issues raised will receive due consideration.
What UPI Users Should Know
The No UPI Day protest withdrawal means the planned October 2 action by AIMRA and AICPDF will not go ahead.
However, the development does not change the scheduled October 15 start date of the proposed MDR framework.
For consumers, UPI continues to remain available.
The proposed MDR concerns specified merchant transactions, while person-to-person UPI payments are not covered by the charge.
The final impact on merchants will depend on the framework implemented from October 15 and any changes the government may make after considering the concerns raised by trade organisations.
