Mobile Retailers Across India Announce October 2 Protest Against Proposed UPI Merchant Discount Rates

TOI Business•Published: Sep 27, 2026 03:14 PM IST

Mobile phone retailers across India have declared October 2 as a 'No UPI Day' to protest the government's proposed 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000. The All India Mobile Retailers Association is leading the movement, arguing that these additional costs will place a significant financial burden on small business owners. The protest aims to pressure authorities to maintain the current zero-MDR policy for digital payments.

Proposed Charges: The government plans to implement a 0.4% MDR on specific UPI merchant transactions valued above Rs 2,000 starting October 15.
Retailer Opposition: The All India Mobile Retailers Association contends that the new fee structure will negatively impact the profit margins of small-scale mobile shops.
Protest Action: Retailers nationwide will refuse to accept UPI payments on October 2 to signal their strong opposition to the upcoming regulatory change.

The Context & Background

This protest follows ongoing debates regarding the sustainability of digital payment infrastructure and the costs associated with processing transactions. While the government has stated that consumers will not be directly charged the MDR, retailers remain concerned about the indirect impact on their operational costs.

Why it matters:This protest highlights the growing tension between digital payment expansion and the financial viability of small businesses. If implemented, the MDR could set a precedent for how digital transaction costs are distributed across the retail sector, potentially influencing future adoption rates of UPI among small merchants.

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