Newspunjab
24 Sept 2026
Protests are being witnessed among trade associations across the country over the new Merchant Discount Rate (MDR) applicable on UPI payments. Various trade associations have announced to observe ‘No UPI Day’ on October 2, Gandhi Jayanti. During this, many merchants will protest by putting black clothes on UPI QR codes, scanners and sound boxes and appeals have been made not to accept UPI payments at some places. The protest is against the 0.4% MDR applicable on P2M UPI transactions worth more than ₹2,000 from October 15, 2026, with a maximum limit of ₹300 per transaction.
Trade associations say this could be an additional cost for retailers and distributors operating on low margins. However, as per the government’s current framework, this charge is to be paid by the associated merchants and not by the customers, and this MDR will not apply to P2P UPI transactions.
According to Business Standard, several trade organizations, including the Maharashtra Chamber of Commerce, Industry and Agriculture, have supported the October 2 protest. These include the All India Mobile Retailers Association, All India Jewelers and Goldsmiths Federation and other organizations.
