Mobile phone retailers across India are set to observe October 2 as “No UPI Day” to protest the proposed 0.4 per cent Merchant Discount Rate (MDR) on eligible UPI merchant transactions. The campaign has been called by the All India Mobile Retailers Association (AIMRA), which says the additional cost could put pressure on small retailers.

The 0.4 per cent MDR on person-to-merchant UPI payments above ₹2,000 is scheduled to take effect from October 15, 2026. Person-to-person payments and eligible transactions up to ₹2,000 will remain outside the charge.

What Is ‘No UPI Day’ on October 2?

AIMRA Vice President and Delhi NCR President Tarvinder Singh said the association has called for the nationwide observance to draw attention to retailers’ concerns over the proposed UPI MDR.

“The All India Mobile Retailers Association (AIMRA) has called for a ‘NO UPI DAY’ on October 2, 2026, to highlight the concerns of mobile retailers regarding the 0.4 per cent Merchant Discount Rate (MDR) applicable to eligible merchant UPI transactions,” AIMRA Vice President and President for Delhi NCR region, Tarvinder Singh, said in a statement.

As part of the campaign, participating retailers plan to cover their UPI QR codes with black cloth and stop accepting UPI payments for the day. October 2 also marks Gandhi Jayanti.

The protest comes as several trade bodies have announced plans to participate in the “No UPI Day” campaign against the new MDR framework.

Mobile Retailers Raise Concerns Over UPI MDR

According to AIMRA’s representation to Finance Minister Nirmala Sitharaman, the proposed MDR could affect the earnings of small mobile retailers that rely heavily on digital payments.

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The association estimates that a retailer processing between ₹5 lakh and ₹30 lakh in monthly UPI transactions could face a monthly loss of ₹2,000 to ₹12,000. AIMRA has argued that this could reduce a significant portion of the net income of smaller businesses.

The retailers’ body has also estimated the overall financial impact at around ₹40 crore every month, or nearly ₹500 crore annually, for small mobile retailers across India.

Retailers hold a placard of "No UPI Day" to protest the proposed 0.4 per cent MDR on eligible UPI merchant transactions
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Retailers hold a placard of “No UPI Day” to protest the proposed 0.4 per cent MDR on eligible UPI merchant transactions. Credit: X/ANI

AIMRA Demands Zero MDR for UPI

AIMRA has stressed that its campaign is not against UPI or digital payments. Instead, the association wants merchant UPI payments to continue under a zero-MDR system.

“If We Want Digital India, UPI Must Remain Zero MDR. This is not a protest against UPI or Digital India. Our concern is the additional financial burden being placed on merchants who accept digital payments. If we want Digital India to grow further, digital payments should remain affordable for the entire retail ecosystem. Our clear demand is that UPI merchant payments should continue under a Zero MDR structure,” Singh said.

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Under the new framework, the 0.4 per cent MDR will apply to specified merchant transactions above ₹2,000, with the charge capped at ₹300 for transactions of ₹75,000 or more.

The October 2 campaign is therefore expected to put the concerns of mobile retailers over UPI MDR at the centre of attention ahead of the October 15 implementation date.