Nagpur traders cover UPI scanners, observe 'No UPI Day' against proposed MDR

Traders in Nagpur observed a 'No UPI Day' on Friday to protest the proposed merchant discount rate (MDR) on UPI transactions. The call was given by the Nagpur Chamber of Commerce. Many traders covered the UPI scanners at their shops and establishments with black cloth. The protest was symbolic, and traders sent photographs of it to the chamber.

Chamber president Pradeep Jaju said a 0.4% MDR has been proposed on UPI transactions above Rs 2,000, which would raise traders' costs. According to him, even if the charge is not meant to be collected directly from the customer, higher business costs could ultimately affect prices and customers. Jaju demanded that the government reconsider the proposed MDR and withdraw it.

Former chamber president and chartered accountant Kailash Jogani said UPI has become a vital means of payment for both traders and customers. Any additional cost on it could add to the difficulties of small and medium traders, he said. If the government promotes digital payments, it should also keep their cost in mind, he said.

Jogani referred to the launch of Apple Pay in India from September 30. In his view, with international payment systems and credit card-based payments being promoted, the government should take a broader view of the policy of levying MDR on UPI. He also said no charge should be levied on UPI until the digital rupee becomes fully practical and widely available to the general public.

Chamber secretary Tarun Nirwan and former president Govind Pasari also urged the government to withdraw the MDR decision soon, in view of traders' concerns. Chamber office-bearers clarified that the traders' protest is not against UPI or digital payments. They are opposing only the imposition of an additional cost on it.

The traders appealed to the government to resolve the issue through talks. Those present included Vasant Paliwal, Nikhil Kakani, Vinod Pawar, Shankarlal Khandelwal, Mahesh Bang, Vivek Ukhalkar, Sandeep Khemka, Mahendra Kataria, Ashish Khandelwal, Laxmikant Agrawal, Ravindra Chandak, Prashant Jagyasi, Nathabhai Patel and Sanjay Pandey.