Traders will not accept UPI payments on 2 Oct:QR codes to be covered with black cloth; traders oppose UPI MDR

If you do not carry cash and make payments only through UPI, you may not be able to do so on October 2. Traders across the country have announced that they will observe a ‘No UPI Day’ on this day. This means merchants and shopkeepers across the country will not accept UPI payments on October 2. Trader organisations have announced a ‘No UPI Day’ in protest against the 0.4% charge on transactions above ₹2,000. On the day, traders will cover the UPI QR codes, scanners, sound boxes and other digital payment devices at their shops with black cloth to register their protest. More than 500 organisations to join the protest Ravindra Mangwe, president of the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA), said he had spoken to several trade organisations across the country. MACCIA is planning to meet the chief minister and present its demands on the issue in association with more than 500 organisations. Traders said they are being punished for promoting Digital India The agitation is also backed by major traders’ organisations across the country New MDR rules to come into effect from 15 October Under the new rules of the National Payments Corporation of India, or NPCI, a 0.40% MDR charge will apply from 15 October to person-to-person (P2M) UPI transactions above ₹2,000. Maximum cap: The maximum limit for this charge has been set at ₹300. Who will be exempt: Regular person-to-person transfers and regular merchant payments of up to ₹2,000 will remain completely free of charge. Relief for small vendors: Small vendors accepting up to ₹1 lakh in UPI payments every month under the person-to-person-to-merchant (P2PM) category have been excluded from this scope. UPI’s scale and other impacts in figures What is the Merchant Discount Rate (MDR)? Merchant Discount Rate, or MDR, is the fee a merchant or shopkeeper pays to banks and payment service providers for using debit or credit cards or digital payment facilities such as point-of-sale machines or payment gateways. This fee is charged to cover the cost of operating digital infrastructure and transfer networks properly. The merchant, not the customer, has to pay this charge.