Mobile phone retailers across India are planning to observe October 2 as “No UPI Day” to protest the proposed 0.4 per cent Merchant Discount Rate (MDR) on certain UPI transactions, a senior official of the All India Mobile Retailers Association (AIMRA) said.
The government has introduced a 0.4 per cent MDR on UPI payments above Rs 2,000 made to merchants, with the new charges scheduled to take effect from October 15. Person-to-person UPI transfers and certain small-value merchant payments will remain exempt.
AIMRA Vice President and Delhi-NCR President Tarvinder Singh said the association has called for the nationwide protest to highlight concerns among mobile retailers over the proposed MDR.
“The All India Mobile Retailers Association (AIMRA) has called for a 'NO UPI DAY' on October 2, 2026, to highlight the concerns of mobile retailers regarding the 0.4 per cent Merchant Discount Rate (MDR) applicable to eligible merchant UPI transactions,” Singh said in a statement.
As part of the protest, retailers are expected to symbolically cover their UPI QR codes with black cloth and stop accepting UPI payments on Gandhi Jayanti.
What Is the 0.4% UPI MDR?
MDR refers to the fee charged to merchants for accepting digital payments. Under the proposed structure, peer-to-peer (P2P) UPI transactions will continue to remain free.
However, peer-to-merchant (P2M) transactions above Rs 2,000 will attract an MDR of 0.40 per cent, subject to a maximum charge of Rs 300.
Payments received by small vendors under the person-to-person-merchant (P2PM) category will also remain free. The category covers small vendors receiving up to Rs 1 lakh per month through UPI, with the provision particularly aimed at businesses operating in rural and semi-urban areas.
