Traders to observe 'No UPI Day' on October 2 against proposed charge on UPI payments

Traders are upset over the proposed charge on UPI transactions. Some trade organisations in the country have called for a 'No UPI Day' on October 2 in protest. The charge is proposed as a 0.4 per cent merchant discount rate (MDR).

On that day, many traders are preparing to stop accepting UPI payments and ask customers to pay in cash. They also plan to cover the QR codes at their shops with black cloth to register their protest.

The government is reported to be set to levy a 0.4 per cent charge on UPI transactions of more than Rs 2,000 for traders from October 15. However, the charge will not apply to peer-to-peer (P2P) transactions between two individuals or to small payments. Trade bodies say the charge will directly affect traders.

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

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

Dnyaneshwar Rakshak, secretary of the Nagpur Chillar Kirana Vikreta Sangh, said the opposition to the charge on UPI was justified. According to him, small change is hard to come by these days, so UPI has become an easy way of paying for both traders and customers. In such a situation, it is not right to put the burden of an additional charge on traders. He said no trader would want to pay the charge out of their own pocket.

Because of the traders' protest, UPI payments are likely to be affected in many markets on October 2.