'No UPI Day' on October 2: Why Mobile Retailers Are Planning a Payment Protest
If you are planning to buy a mobile phone, charger, earphones or other electronic items from a local shop on October 2, keep your payment method in mind. Several mobile retailers across the country are planning to observe a ' No UPI Day ' on Gandhi Jayanti to protest a proposed charge on certain high-value merchant UPI transactions.
The protest has been called by the All India Mobile Retailers Association (AIMRA). Retailers may cover their UPI QR codes with black cloth and temporarily stop accepting UPI payments as a symbolic demonstration.
Retailers say the additional cost could affect the earnings of small businesses, particularly mobile shops where customers frequently make high-value purchases.
According to AIMRA, a retailer processing between ₹5 lakh and ₹30 lakh in UPI transactions each month could face an additional cost of around ₹2,000 to ₹12,000. The association has estimated that the overall burden on small mobile retailers could reach around ₹40 crore a month, or nearly ₹500 crore a year.
The charge is aimed at specified person-to-merchant (P2M) transactions above ₹2,000. Person-to-person transfers will continue to remain free. Small merchants that meet the applicable exemption criteria will also not have to pay the MDR.
Importantly, the proposed MDR is a merchant-side charge. It is not meant to be an additional fee directly charged to customers for making an eligible UPI payment.
AIMRA has clarified that its campaign is about the proposed merchant fee and not against UPI or digital payments themselves. The association is seeking continuation of a zero-MDR structure for merchant UPI payments.
Therefore, customers planning expensive purchases from mobile stores on October 2 may want to check with the shop about accepted payment methods before completing their purchase.
For example, a 0.4% charge on ₹1 lakh of eligible transactions would amount to ₹400. For businesses processing several lakh rupees through eligible UPI payments each month, the cumulative cost could become more noticeable.
The October 2 protest is therefore intended to highlight retailers' concerns before the proposed MDR takes effect on October 15.
The protest has been called by the All India Mobile Retailers Association (AIMRA). Retailers may cover their UPI QR codes with black cloth and temporarily stop accepting UPI payments as a symbolic demonstration.
Why Are Mobile Retailers Protesting?
The main concern is the proposed 0.4% Merchant Discount Rate (MDR) on eligible UPI payments made to merchants above ₹2,000. The new MDR is scheduled to take effect from October 15, 2026.Retailers say the additional cost could affect the earnings of small businesses, particularly mobile shops where customers frequently make high-value purchases.
According to AIMRA, a retailer processing between ₹5 lakh and ₹30 lakh in UPI transactions each month could face an additional cost of around ₹2,000 to ₹12,000. The association has estimated that the overall burden on small mobile retailers could reach around ₹40 crore a month, or nearly ₹500 crore a year.
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Will Every UPI Payment Attract 0.4%?
No. The proposed MDR does not apply to every UPI transaction.The charge is aimed at specified person-to-merchant (P2M) transactions above ₹2,000. Person-to-person transfers will continue to remain free. Small merchants that meet the applicable exemption criteria will also not have to pay the MDR.
Importantly, the proposed MDR is a merchant-side charge. It is not meant to be an additional fee directly charged to customers for making an eligible UPI payment.
What Could Happen On October 2?
On Gandhi Jayanti, participating mobile retailers are expected to use black cloth to cover their UPI QR codes and may refuse UPI payments for the day.AIMRA has clarified that its campaign is about the proposed merchant fee and not against UPI or digital payments themselves. The association is seeking continuation of a zero-MDR structure for merchant UPI payments.
Therefore, customers planning expensive purchases from mobile stores on October 2 may want to check with the shop about accepted payment methods before completing their purchase.
Why Is The Issue Important For Mobile Shops?
Mobile phones and electronic accessories can involve relatively large transactions. Retailers argue that when a significant share of their sales is paid through UPI, even a small percentage-based fee can add up over time.For example, a 0.4% charge on ₹1 lakh of eligible transactions would amount to ₹400. For businesses processing several lakh rupees through eligible UPI payments each month, the cumulative cost could become more noticeable.
The October 2 protest is therefore intended to highlight retailers' concerns before the proposed MDR takes effect on October 15.
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