North India Statesman
In a significant relief for consumers and digital payment ecosystems nationwide, leading trader associations have formally called off their planned “No UPI Day” protest scheduled for October 2. The decision to suspend the strike came following an extensive consultation between a 20-member delegation of trade representatives and Union Finance Minister Nirmala Sitharaman in New Delhi. During the talks, the government provided firm assurances that the interests of micro, small, and medium retailers would be protected while continuing to advance India’s cashless transaction framework.
The Core Grievance: Proposed Merchant Discount Rate (MDR)
The protest had been called primarily to oppose the impending rollout of a 0.40% Merchant Discount Rate (MDR) on specified person-to-merchant (P2M) UPI transactions above ₹2,000, which was slated to take effect from October 15.
Under the contested framework, transactions above ₹2,000 would attract an MDR charge capped at ₹300 for high-value purchases exceeding ₹75,000. While the National Payments Corporation of India (NPCI) noted that over 96% of merchant transactions are below ₹2,000 and remain completely free, trader associations voiced deep concern that the levy would disproportionately squeeze operating margins for mobile vendors, electronics distributors, consumer goods dealers, and jewelers dealing in mid-to-high ticket inventory.
As part of the symbolic protest planned for Gandhi Jayanti, merchants had proposed covering payment QR codes, audio soundboxes, and scanning devices with black cloth across retail counters nationwide.
Breakthrough Meeting With Finance Minister Sitharaman
The delegation, led by Chandni Chowk Member of Parliament and Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal, included key leaders from the All India Consumer Products Distributors Federation (AICPDF) and the All India Mobile Retailers Association (AIMRA).
During the session, the Finance Minister affirmed that the central government remains committed to supporting digital innovation without imposing undue transactional burdens on retail shopkeepers.
Trade bodies submitted a memorandum requesting:
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A phased transition for any proposed charge, beginning at a lower rate (such as 0.20%) rather than an abrupt 0.40% levy.
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Complete exemption of merchant-to-merchant (M2M) and supply-chain inventory payments from MDR applicability.
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Raising the annual turnover threshold for MDR from ₹1 lakh to ₹5 lakh to safeguard small traders.
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The formation of a dedicated expert committee featuring industry stakeholders to review fee structures and avoid friction in digital adoption.
Digital India Mission Continues Uninterrupted
Following the government’s constructive reception of their representation, AICPDF President Dhairyshil Patil and AIMRA leadership announced the immediate withdrawal of the October 2 strike. Trade leaders reiterated that the retail community stands firmly behind the Digital India mission, emphasizing that UPI has set a global standard for friction-free retail commerce.
With the protest cancelled, UPI transaction counters, digital soundboxes, and merchant QR scanners will operate normally across all retail establishments, departmental stores, and neighborhood kirana outlets on October 2. Continued consultations between the Ministry of Finance, the Reserve Bank of India, NPCI, and trade bodies are expected ahead of the proposed October 15 timeline to finalize a sustainable, balanced framework.
