Indian mobile retailers halt UPI October 2 over proposed MDR
On October 2, mobile retailers across India will stop accepting UPI payments for a day to protest a proposed 0.4% Merchant Discount Rate (MDR) on these transactions.
The All India Mobile Retailers Association says this fee could mean an extra ₹2,000 to ₹12,000 per month for small shops, adding up to a hefty ₹40 crore a month nationwide.
They want the zero-MDR rule to stay so digital payments remain free for businesses.
FAIVM works with government on MDR
While many shops are joining "No UPI Day," the Federation of All India Vyapar Mandal (FAIVM) is skipping the protest and working with the government instead.
FAIVM says UPI is not merely a payment mechanism but an important component of India's digital economic infrastructure and says they're focused on discussing the fees or charges required to support a self-sustaining payment infrastructure without affecting the business of small traders.
The new MDR rule is set to kick in from October 15 for certain transactions over ₹2,000.