Traders call for 'No UPI Day' on October 2 against proposed 0.4% fee on UPI payments

Several trade organisations across the country have called for a "No UPI Day" on October 2. They are protesting the proposed 0.4% merchant discount rate (MDR) fee on UPI transactions. Many traders are preparing to stop accepting UPI payments that day and will deal with customers only in cash. As a mark of protest, they also plan to cover the QR codes at their shops with black cloth.

The government is said to be planning to levy a 0.4% fee on merchant UPI transactions above Rs 2,000 from October 15. The fee will not apply to peer-to-peer (P2P) transactions between two individuals or to small payments. Trade bodies say the fee will directly hit traders.

Swapnil Ahirkar, president of the Nag Vidarbha Chamber of Commerce, said some traders had raised the issue of MDR on UPI. The chamber's annual general meeting will be held on September 30, where the matter will be discussed and a decision taken.

Kailash Jogani, president of the Nagpur Chamber of Commerce, said traders were opposing the UPI fee. The organisation has appealed to traders to register their protest on October 2 by covering their shops' QR codes with black cloth.

Dnyaneshwar Rakshak, secretary of the Nagpur Chillar Kirana Retailers Association, said the opposition to the UPI fee was justified. According to him, there is currently a shortage of small change, which has made UPI a convenient option for both traders and customers. In such a situation, it would not be fair to burden traders with an extra fee. He also said, "No trader would want to pay this fee out of their own pocket."

The protest is expected to affect UPI payments in many markets on October 2.