📷 Image: Wikimedia Commons / Yann Forget
Business
Madhya Pradesh merchants plan 'No UPI Day' on Sept 23 over proposed 0.4% MDR
✍️ Amar Ujala · Madhya Pradesh
🗓 22 Sep 2026, 06:31 PM
👁 13
Merchants in Madhya Pradesh are set to observe a "No UPI Day" on September 23 to protest a proposed 0.4% merchant discount rate on UPI transactions above Rs 2,000.
Madhya Pradesh’s merchant community is gearing up for a "No UPI Day" on September 23, signalling collective discontent with a pending regulatory change. The move is aimed at highlighting the impact of a proposed 0.4% merchant discount rate (MDR) that would apply to UPI transactions exceeding Rs 2,000.
The 0.4% MDR, if implemented, would increase the cost of higher‑value digital payments for small and medium enterprises that rely heavily on UPI for daily sales. Traders fear that the additional charge could erode thin profit margins, especially in sectors such as retail, food services and local markets where transaction values often cross the Rs 2,000 threshold.
Organisers of the protest have called on state authorities and the National Payments Corporation of India (NPCI) to reconsider the fee structure, arguing that UPI’s success rests on its near‑zero cost model. As of now, officials have not issued a formal response, leaving merchants to decide whether the boycott will affect transaction volumes on the designated day.
The episode underscores the growing tension between policymakers seeking revenue from digital payments and a merchant base that views low‑cost UPI access as essential to their operations. Any shift in the fee regime could set a precedent for other states as India’s digital payments ecosystem continues to expand.
The 0.4% MDR, if implemented, would increase the cost of higher‑value digital payments for small and medium enterprises that rely heavily on UPI for daily sales. Traders fear that the additional charge could erode thin profit margins, especially in sectors such as retail, food services and local markets where transaction values often cross the Rs 2,000 threshold.
Organisers of the protest have called on state authorities and the National Payments Corporation of India (NPCI) to reconsider the fee structure, arguing that UPI’s success rests on its near‑zero cost model. As of now, officials have not issued a formal response, leaving merchants to decide whether the boycott will affect transaction volumes on the designated day.
The episode underscores the growing tension between policymakers seeking revenue from digital payments and a merchant base that views low‑cost UPI access as essential to their operations. Any shift in the fee regime could set a precedent for other states as India’s digital payments ecosystem continues to expand.