Trade representatives in Delhi are preparing to hold a 'No UPI Day' action on October 2. This initiative is aimed against the introduction of a discount rate for sellers (MDR) for UPI payments exceeding 2000 rupees, which is set to come into effect on October 15.
The traders' organization, the 'Chamber of Trade and Industry' (CTI), has called on all sellers and entrepreneurs in Delhi and across the country to join this protest. On the day of the action, traders intend to cover their UPI QR codes, scanners, and sound boxes with black cloth, insisting on receiving payment exclusively in cash.
The protest is related to the new MDR, which will be effective from October 15, 2026, for transactions exceeding 2000 rupees. CTI has appealed to Finance Minister Nirmala Sitharaman, demanding the cancellation of this decision.
According to CTI, the introduction of the new MDR will increase traders' expenses. For example, for a payment of 3000 rupees, the seller will have to pay about 12 rupees. Similarly, for a transaction of 50,000 rupees, this amount could reach approximately 200 rupees, with an upper limit of 300 rupees set for large sums.
CTI General Secretary Gurmit Arora and Ramesh Ahuja emphasized that the organization is not against digital payments, but the additional cost could create serious difficulties for retail sellers and distributors operating on small margins.
According to CTI Vice President Rahul Adlakhi and Secretary Kunjah Nakra, this decision could affect around 60 million traders, entrepreneurs, and shop owners across the country. CTI asserts that the increased costs due to the implementation of MDR will raise the financial burden on traders.
CTI Chairman Brijnesh Goel expressed concern that this could lead to an increase in cash transactions and a 50 percent decrease in UPI payments. It should be noted that this is only a speculation made by CTI and not an official assessment.
Citing government data, CTI reported that in the fiscal year 2025-26, UPI processed approximately 24,162 billion transactions, with a total value of approximately 314 trillion rupees. UPI accounted for about 84 percent of the country's total digital transaction volume. Furthermore, the total value of payments from individuals to sellers (P2M) reached about 198 trillion rupees. CTI notes that although transactions exceeding 2000 rupees constituted only 4 percent of the total number, their aggregate value reached 131 trillion rupees, meaning that over 66 percent of the total value of UPI payments to sellers was attributed to transactions exceeding 2000 rupees.
Finance Minister Nirmala Sitharaman stated that the government has not introduced MDR for UPI. She clarified that this levy is collected by NPCI from banks and payment companies as a service charge, and these funds will not go into the state treasury. The Minister also explained that the MDR for UPI payments exceeding 2000 rupees will be paid by the seller or trader themselves, not the customer. Additionally, she mentioned that MDR is also paid by sellers for certain credit and debit card operations.