Mobile retailers to protest against UPI charges on October 2
What's the story
Mobile phone retailers across India will observe a "No UPI Day" on October 2. The protest is against the government's decision to impose a 0.4% Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions exceeding ₹2,000. The All India Mobile Retailers Association (AIMRA) announced the protest, with its President for Delhi NCR region, Tarvinder Singh, explaining that it aims to highlight mobile retailers' concerns over this new charge.
Protest strategy
Retailers will cover UPI QR codes with black cloth
As part of the protest, retailers will cover UPI QR codes with black cloth and refuse to accept UPI payments on Gandhi Jayanti.
Singh said that according to a representation sent to Finance Minister Nirmala Sitharaman by AIMRA, the move to impose MDR on UPI will lead to an immediate net monthly loss of ₹2,000 to ₹12,000 for a small retailer processing ₹5 lakh to ₹30 lakh monthly via UPI transactions.
He stressed that this would significantly reduce their income.
Financial impact
Protest not against Digital India, says AIMRA
The AIMRA estimates that the 0.4% MDR will impose an unbearable financial burden of around ₹40 crore per month and nearly ₹500 crore annually on small mobile retailers across India.
Singh emphasized that their protest isn't against UPI or Digital India but against the additional financial burden placed on merchants accepting digital payments.
He reiterated their demand for zero MDR on UPI merchant payments to keep digital payments affordable for the entire retail ecosystem.