Trader organisations have withdrawn their planned ‘No UPI Day’ protest scheduled for October 2 after a delegation met Union Finance Minister Nirmala Sitharaman in New Delhi on September 30.The meeting focused on concerns surrounding the proposed Merchant Discount Rate (MDR) of 0.4% on eligible merchant UPI transactions above ₹2,000.Key Highlights Trader organisations withdrew the planned October 2 ‘No UPI Day’ protest. A delegation of around 20 trade representatives met Finance Minister Nirmala Sitharaman. Traders raised concerns over the proposed 0.4% MDR. The charge is proposed for eligible merchant UPI transactions above ₹2,000. The proposed MDR is scheduled to begin from October 15. Trader bodies have sought consideration of their concerns before implementation.Traders Meet Finance MinisterA delegation of around 20 senior trade representatives from different states met Sitharaman to discuss the proposed UPI charge.The delegation was led by Praveen Khandelwal, Member of Parliament from Chandni Chowk and Secretary General of the Confederation of All India Traders (CAIT). Representatives from various retail and trade organisations also participated in the meeting.The traders raised concerns about the potential impact of the proposed MDR on small and medium businesses, particularly during the upcoming festive season.‘No UPI Day’ Protest WithdrawnThe All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF) had announced plans for a symbolic ‘No UPI Day’ on October 2.Following the discussions with the Finance Minister, the organisations decided to withdraw the planned protest. According to reports, traders said the meeting was constructive and that their concerns would receive due consideration.The decision means the proposed October 2 protest will not go ahead as planned by the participating organisations.What Is the Proposed UPI MDR?The proposed 0.4% Merchant Discount Rate would apply to specified person-to-merchant UPI transactions above ₹2,000.The proposed charge is a merchant-side fee rather than a direct charge on consumers. The Finance Ministry has previously said that the MDR would not be passed on to consumers.The new framework is scheduled to take effect from October 15, although traders have raised concerns about its impact on businesses with relatively low margins.Traders Seek Further ConsiderationTrader organisations have asked the government to consider their concerns before the proposed MDR comes into effect.According to reports, the associations have discussed measures including a phased rollout and changes to the threshold for transactions covered by the MDR. The discussions are expected to continue between the government and representatives of the trading community.UPI Charges and Digital PaymentsThe proposed MDR has triggered discussion among traders and retailers because UPI has become an important payment method for businesses across India.Earlier this month, some trader groups had organised or announced symbolic protests over the proposed charges. The latest meeting with the Finance Minister has shifted the focus towards discussions on how the MDR should be implemented and its potential impact on merchants.What Happens Next?The withdrawal of the ‘No UPI Day’ protest does not mean that the proposed MDR has been withdrawn.The 0.4% charge on eligible merchant UPI transactions above ₹2,000 remains scheduled for implementation from October 15, according to reports. Trader organisations have indicated that they will continue discussions with the government regarding their concerns.The development comes as India continues to expand its digital payments ecosystem, with UPI remaining a major payment method for consumers and businesses.
