Trade organisations have withdrawn their proposed October 2 “No UPI Day” protest after representatives met Finance Minister Nirmala Sitharaman and raised concerns over the proposed merchant discount rate (MDR) on certain UPI transactions.
The protest had been called by the All India Consumer Products Federation and the All India Mobile Retailers Association. The decision to withdraw it followed a meeting in New Delhi between the finance minister and a delegation of around 20 senior trade representatives from different states.
The proposed 0.4% fee on merchant UPI payments above ₹2,000 remains scheduled to take effect from October 15. Traders have expressed concerns that the additional cost could particularly affect small and medium businesses during the upcoming festive season.
The delegation was led by Praveen Khandelwal, Member of Parliament from Chandni Chowk and Secretary General of the Confederation of All India Traders (CAIT).
Khandelwal said the 2 organisations decided to withdraw the protest after what he described as constructive discussions and an assurance that the concerns raised by traders would receive consideration.
The trade bodies have asked the government to defer implementation of the proposed MDR in view of the festive season and increased business activity. They have also sought a review of the proposed ₹1 lakh threshold and suggested raising it to ₹5 lakh.
Another demand is to keep merchant-to-merchant (M2M) transactions outside the proposed MDR framework. The associations have also called for a special committee to examine their concerns and suggest a way forward.
During the meeting, representatives highlighted concerns about the potential impact of the proposed fee on traders, particularly small and medium businesses. They also stressed the need to maintain the growth of digital payments without placing additional financial pressure on merchants.
According to CAIT, Sitharaman assured the delegation that the government remains committed to expanding digital transactions while considering the interests of different stakeholders.
The trade representatives reiterated their support for the Digital India initiative and UPI, describing the payment system as a global model for digital transactions.
They said their concerns were not aimed at opposing digital payments, but at ensuring that policies governing digital transactions remain balanced and workable for consumers and businesses.
The associations said they expected continued discussions with the government to help develop a framework that supports India’s digital payments ecosystem while addressing the concerns of traders and MSMEs.
With the protest now withdrawn, attention will remain on the proposed October 15 implementation date and the government’s consideration of the trade bodies’ requests.
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