📷 Image: Wikimedia Commons / Nico Crisafulli from USA
Business
Rajasthan traders protest UPI MDR, warn of service shutdown
✍️ Amar Ujala · Rajasthan
🗓 18 Sep 2026, 03:31 PM
👁 10
Small merchants in Rajasthan are rallying against the new UPI merchant discount rate, saying the fee will ultimately be borne by customers and threatening to disable UPI payments.
Rajasthan’s small‑scale traders have begun a coordinated protest against the recently announced merchant discount rate (MDR) on the Unified Payments Interface (UPI). The merchants argue that the additional charge, which will be levied on each digital transaction, will be passed on to end‑consumers, eroding the affordability that UPI originally promised.
Several trader associations have issued statements warning that if the MDR is enforced, many of them will cease accepting UPI payments altogether. They contend that the cost increase could push cash‑dependent customers back to traditional payment methods, undermining the digital economy’s growth in the state.
Industry observers note that the MDR is part of a broader regulatory effort to standardise fees across payment platforms, but the backlash in Rajasthan highlights the tension between policy goals and ground‑level business realities. The protest remains largely peaceful, with traders organizing meetings and social media campaigns to amplify their concerns.
The state government has not yet issued an official response, and the outcome of the merchants’ threat to shut down UPI acceptance could influence how the policy is rolled out nationwide.
Several trader associations have issued statements warning that if the MDR is enforced, many of them will cease accepting UPI payments altogether. They contend that the cost increase could push cash‑dependent customers back to traditional payment methods, undermining the digital economy’s growth in the state.
Industry observers note that the MDR is part of a broader regulatory effort to standardise fees across payment platforms, but the backlash in Rajasthan highlights the tension between policy goals and ground‑level business realities. The protest remains largely peaceful, with traders organizing meetings and social media campaigns to amplify their concerns.
The state government has not yet issued an official response, and the outcome of the merchants’ threat to shut down UPI acceptance could influence how the policy is rolled out nationwide.