Traders Call Off ‘No UPI Day’: What Changed After Meeting FM Nirmala Sitharaman?

Leading traders’ and retailers’ bodies have withdrawn their proposed ‘No UPI Day’ protest scheduled for October 2 after a delegation met Finance Minister Nirmala Sitharaman in New Delhi on Wednesday. The traders had planned the protest over the proposed 0.40 per cent Merchant Discount Rate (MDR) on select UPI merchant transactions above Rs 2,000.

The delegation, led by Chandni Chowk MP and Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal, included around 20 senior trade representatives from different states. The traders raised concerns about the potential impact of the proposed charges on small and medium businesses. Following the meeting, the All India Consumer Products Federation (AICPDF) and All India Mobile Retailers Association (AIMRA) decided to withdraw the October 2 protest call. MDR on UPI Transactions Will Not Be Passed on to Consumers: Nirmala Sitharaman.

Traders Withdraw October 2 ‘No UPI Day’ Call

The ‘No UPI Day’ campaign had been planned as a protest against the proposed MDR framework for higher-value merchant transactions. Speaking after the meeting, Khandelwal said the decision to withdraw the protest followed constructive discussions with the Finance Minister and an assurance that the concerns raised by the trading community would receive due consideration. The trade bodies said their objective was not to oppose UPI or digital payments. Instead, they sought a payment framework that would avoid placing additional financial pressure on traders and small businesses.

What Traders Told Finance Minister Sitharaman

During the meeting, the delegation sought deferment of the proposed MDR implementation, particularly in view of the upcoming festive season and the expected increase in business activity. The traders also proposed a phased implementation of the MDR instead of introducing the 0.40 per cent rate immediately. Their proposal included starting at 0.20 per cent in 2026-27 and increasing it gradually by 0.05 percentage points each year until reaching 0.40 per cent. Another demand was to review the threshold associated with the proposed charges and raise it to Rs 5 lakh. The trade bodies also sought exclusion of merchant-to-merchant transactions from the MDR framework.

UPI MDR To Take Effect From October 15

The withdrawal of the protest does not mean that the proposed UPI MDR has been cancelled. Under the notified framework, a 0.40 per cent MDR will apply to eligible person-to-merchant (P2M) UPI transactions above Rs 2,000 from October 15, 2026. Transactions up to Rs 2,000 will continue without MDR, while person-to-person UPI transfers will also remain free. For eligible transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction. The charge is a merchant-side payment and does not amount to a fee directly imposed on consumers for making UPI payments. UPI Payments Beyond INR 2,000 May Attract Charges, NPCI Guidelines Soon: Report.

NPCI Says Most UPI Transactions Will Remain Unaffected

The National Payments Corporation of India (NPCI) has said that transactions up to Rs 2,000 account for more than 95 per cent of P2M UPI transaction volume. These transactions will continue to remain outside the MDR framework. The new framework is therefore focused on selected higher-value merchant payments rather than all UPI transactions. The proposed charges have nevertheless triggered concerns among sections of the trading community, particularly over the effect on businesses operating on relatively narrow margins.

Traders Seek Further Dialogue With Government

After the meeting, trade representatives reiterated their support for the Digital India mission and the expansion of UPI as a digital payment system. The organisations said they would continue discussions with the government on the MDR framework and expressed hope that their concerns would be considered before the October 15 implementation date. For now, the October 2 ‘No UPI Day’ protest has been withdrawn, while the proposed MDR framework remains scheduled to come into effect from October 15.

(The above story first appeared on LatestLY on Sep 30, 2026 06:13 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).