Leading traders’ associations have withdrawn their proposed “No UPI Day” protest on October 2 following a meeting with Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday.
A delegation of around 20 representatives from traders’ organisations across various states met the Finance Minister and raised concerns over the proposed 0.4 per cent fee on eligible merchant UPI transactions above ₹2,000.
The delegation was led by Praveen Khandelwal, Member of Parliament from Chandni Chowk and Secretary General of the Confederation of All India Traders (CAIT).
Traders Raise Concerns Over UPI Charges
The traders argued that the proposed charge could increase the financial burden on small and medium-sized businesses and potentially discourage merchants from adopting digital payment methods. They sought clarity from the government and urged it to consider the concerns of the trading community before implementing the proposed fee.
Earlier, the All India Consumer Products Federation and the All India Mobile Retailers Association had announced plans to observe October 2 as “No UPI Day” in protest against the proposed charge.
However, following discussions with the Finance Minister, the organisations decided to withdraw the protest call.
Speaking to reporters after the meeting, Khandelwal said the decision followed constructive discussions and assurances that the concerns raised by traders would receive due consideration. He said traders were encouraged by the dialogue and would continue discussions with the government.
0.4% Fee Proposed From October 15
Despite the withdrawal of the protest, the proposed 0.4 per cent fee on eligible merchant UPI transactions above ₹2,000 is scheduled to come into effect from October 15.
Traders’ organisations said they remain hopeful that their concerns will be addressed before the proposed charge is implemented.
Meanwhile, the National Payments Corporation of India (NPCI) had earlier rejected reports suggesting that GST on UPI Merchant Discount Rate (MDR) would significantly increase costs for small merchants.
NPCI clarified that MDR applies only to person-to-merchant (P2M) UPI transactions above ₹2,000, while transactions up to ₹2,000 continue to have zero MDR and, consequently, no GST impact on MDR.
According to government data cited by NPCI, transactions of up to ₹2,000 account for more than 96 per cent of UPI merchant transaction volume. Therefore, the vast majority of UPI merchant transactions would continue without MDR and GST on MDR.
