Mobile phone retailers across India are planning to observe October 2, 2026, as “No UPI Day” to protest the proposed 0.4% Merchant Discount Rate (MDR) on eligible UPI merchant transactions.
The protest has been announced by the All India Mobile Retailers Association (AIMRA). Retailers participating in the campaign plan to temporarily stop accepting UPI payments and symbolically cover their QR codes with black cloth on Gandhi Jayanti.
The new MDR is scheduled to apply from October 15 to specified UPI payments of more than ₹2,000 made to merchants. Person-to-person transactions and small payments below ₹2,000 are not covered by this charge.
Why Are Mobile Retailers Opposing the UPI Charge?
AIMRA Vice President and Delhi-NCR President Tarvinder Singh said the October 2 protest is intended to highlight retailers’ concerns about the additional cost associated with the proposed MDR.
According to a memorandum submitted by AIMRA to Finance Minister Nirmala Sitharaman, the association estimates that a small retailer processing between ₹5 lakh and ₹30 lakh in UPI transactions each month could face a net monthly loss of around ₹2,000 to ₹12,000.
AIMRA estimates that the 0.4% MDR could create a financial burden of approximately ₹40 crore every month, or nearly ₹500 crore annually, for small mobile retailers across the country.
AIMRA Wants UPI to Remain Under Zero MDR
AIMRA has said its protest is not against UPI or digital payments. The association’s stated concern is the additional financial burden that the MDR could place on merchants.
Tarvinder Singh said the association wants merchant UPI payments to continue under a zero-MDR framework. According to AIMRA, keeping UPI costs at zero for merchants would support the continued use of digital payments across the retail sector.
CAIT Denies Calling for a Nationwide No UPI Day
Meanwhile, the Confederation of All India Traders (CAIT) has clarified that reports claiming it called for a nationwide “No UPI Day” on October 2 are incorrect.
CAIT said some trade organisations and regional bodies may have independently announced programmes or protests concerning the MDR issue. The clarification means the October 2 campaign described above is specifically the initiative announced by AIMRA, rather than a call issued by CAIT.
Disclaimer
This article is based on statements and information available regarding the proposed UPI MDR framework and the announced retailer protest. Details of the policy, its implementation and participation in the protest may change. Readers should refer to official government, RBI, NPCI and association updates for the latest information.