Mobile phone retailers across India are planning to observe a “No UPI Day” on October 2 to protest the 0.4 percent Merchant Discount Rate (MDR) charge on UPI transactions, a senior official of industry body AIMRA said. The government has imposed a 0.4 percent fee on UPI transfers above Rs 2,000 to merchants from October 15, while exempting person-to-person transactions and smaller payments from any charges. Let us also tell you what mobile retailers have to say about this?

Announcement of ‘No UPI Day’

The All India Mobile Retailers Association (AIMRA) has called for a ‘No UPI Day’ on October 2, 2026 to highlight the concerns of mobile retailers regarding the 0.4 percent merchant discount rate (MDR) applicable on eligible merchant UPI transactions, AIMRA Vice President and Delhi NCR Region President Tarendra Singh said in a statement. He said retailers will cover the UPI QR code with a black cloth on Gandhi Jayanti and will not accept UPI payments.

Such a loss to a shopkeeper

According to a memorandum sent by AIMRA to Finance Minister Nirmala Sitharaman, the move to impose MDR on UPI will result in UPI paying Rs. 5 lakh to Rs. 30 lakh to small retailers with a turnover of Rs. 2,000 to Rs. 12,000 would be an immediate monthly loss, wiping out a large portion of their total income. The Mobile Retailers Body estimates that the 0.4% MDR would cost small mobile retailers across India approximately Rs. 40 crores and annually approximately Rs. 500 crore will impose a burden, which will be difficult to bear.

This is a big demand

Singh said that MDR on UPI should be zero if we want Digital India. This is not against UPI or Digital India. Our concern is about the additional financial burden on merchants accepting digital payments. If we want Digital India to move forward, digital payments must remain affordable for the entire retail ecosystem. It is our clear demand that UPI merchant payments continue under the zero MDR framework.