Patna: Mobile retailers in Bihar will observe ‘No UPI Day’ on October 2 to protest the 0.4% Merchant Discount Rate (MDR) applicable to specified UPI merchant transactions above Rs 2,000 from October 15.
The campaign has been called by the All India Mobile Retailers Association (AIMRA). As part of the protest, participating retailers plan to cover UPI QR codes displayed at their shops with black cloth.
Retailers To Cover QR Codes
AIMRA Bihar office-bearers said the protest is aimed at the MDR provision and is not against UPI or digital payments.
Sandeep Srivastava, vice-president of AIMRA Bihar, said retailers are seeking the continuation of zero MDR for merchant UPI transactions, particularly because mobile purchases often involve higher-value payments.
What The New MDR Framework Says
Under the new framework, a 0.4% MDR will apply to specified person-to-merchant UPI transactions above Rs 2,000. For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction.
Person-to-person UPI transactions will remain free, while merchant payments up to Rs 2,000 will also remain outside the MDR framework. The government has said about 96% of merchant transactions will remain unaffected.
Mobile Retailers Raise Cost Concerns
Srivastava said the mobile retail sector frequently handles transactions above Rs 2,000 and could therefore face additional costs under the new framework.
Retailers argue that the increased use of digital payments should not result in additional transaction costs for merchants. Their demand is for merchant UPI transactions to remain under a zero-MDR system.
‘Zero MDR Needed For Digital India’
Srivastava said the campaign should not be viewed as opposition to the Digital India initiative or UPI itself.
“If we want Digital India, we need zero MDR on UPI,” he said, reiterating the association’s demand for exemption from MDR on merchant UPI payments.
The ‘No UPI Day’ campaign is scheduled for October 2, ahead of the new MDR framework coming into effect on October 15. Other business associations have also announced participation in the October 2 protest.
