Traders’ bodies have called off their “No UPI Day” protest which was proposed to be held on Friday, 2 October, following a meeting with Union Finance Minister Nirmala today, PTI reported citing officials.
The All India Mobile Retailers Association (AIMRA) and All India Consumer Products Distributors Federation (AICPDF) in an official statement on Wednesday, 30 September said the ‘No UPI Day’ protest has been called off.
Notably, the mobile retailers’ association had called for ‘No UPI Day’ on October 2 to protest against the Centre’s proposed 0.4% merchant discount rate () on UPI transactions above ₹2,000, set to come into effect from 15 October, stating that the charge would put additional burden on small retailers.
As part of the protest, across the country were proposed to cover their UPI QR codes, sound boxes and payment scanners with a black cloth to symbolically register their opposition to the MDR charge, the association said in a statement.
The trade delegation led by BJP MP and Confederation of all Indian Traders () secretary general Praveen Khandelwal, and AIMRA founder chairman Kailash Lakhyani, submitted a joint representation to the minister.
PTI reported that Sitharaman heard concerns raised by the traders and assured the delegation that the issues would be duly considered and addressed. Following the assurances, and AICPDF decided to withdraw their protest, the associations said in the release.
AIMRA had earlier said the proposed MDR would affect the “already thin” profit margins of micro, small and medium enterprises (MSMEs), shopkeepers and independent retailers, who rely on digital payments for day-to-day transactions.
The National Payments Corporation of India () on 15 September announced MDR charge would apply on select UPI transactions, adding that there would be “no impact on any person-to-person transactions”.
As per the official release, 0.4% MDR will be introduced from 15 October on Person-to-Merchant (P2M) UPI transactions above ₹2,000, with charges capped at ₹300 per transaction for transactions of ₹75,000 and above.
A statement from the Finance Ministry reasoned that as will continue to remain completely free for all P2P transactions, irrespective of the amount transferred, about “70% of the total transaction value will remain completely outside the MDR framework” and close to 96% of merchant transactions will remain free.
– of 0.4% will apply to P2M transactions above ₹2,000.
– For transactions of ₹75,000 and above, the MDR will be capped at ₹300 per transaction.
– Transactions above ₹2,000 in essential and thin-margin sectors, including railways, telecommunications, insurance, fuel and agricultural inputs, will attract a flat MDR of ₹5 per transaction.
– Payments relating to , securities, stockbrokers and dealers will attract an MDR of 0.02%, capped at ₹300 per transaction.
(With inputs from PTI)
