Traders have split into two camps regarding the 'No UPI Day' campaign. This campaign was initiated as a protest against the introduction of Merchant Discount Rate (MDR) for UPI payments exceeding 2000 rupees. Consequently, some sellers may request cash instead of accepting UPI payments on Ganesh Chaturthi, which falls on October 2nd.
The 'Chamber of Trade and Industry' (CTI) has called on traders to cover their QR codes, scanners, and sound boxes and accept only cash on Ganesh Chaturthi. However, the Confederation of All India Traders (CAIT) has distanced itself from this initiative.
The Confederation of All India Traders (CAIT), led by BJP MP Parin Khandelwal, stated that it would not observe 'No UPI Day' on October 2nd and had made no calls for traders to participate. CAIT emphasized that the organization had not made any decisions, proposals, or official statements regarding this matter.
While CAIT maintains its distance, the Chamber of Trade and Industry (CTI) has announced the observance of 'No UPI Day' on October 2nd in protest against the introduction of MDR for UPI payments. CTI asserts that traders have not revoked their decision, and that this campaign will be conducted by members across the country, including Delhi. More than one hundred large trade organizations will participate in this event.
CTI hopes that 'No UPI Day' will be observed in over 2000 locations nationwide. The organization has appealed to all sellers and traders in Delhi and across the country to cover their UPI terminals with black cloth and conduct transactions exclusively in cash.
The Chamber of Trade and Industry has demanded that Finance Minister Nirmala Sitharaman repeal the MDR applied to UPI transactions exceeding 2000 rupees. CTI argues that this will burden 60 million sellers and traders. Furthermore, the organization warned that the introduction of a charge for UPI payments over 2000 rupees starting October 15th could lead to a 50% decrease in UPI usage, potentially increasing the circulation of physical currency in the country.
It should be noted that the MDR for UPI payments is set at 0.4% for amounts over 2000 rupees, but the system is not uniform for all payments. It also includes a fixed-rate category applicable to all UPI payments, including transactions at petrol pumps, where a fixed MDR of 5 rupees is set. Additionally, traders with payments up to 100,000 rupees are provided with a concession as they fall under the zero MDR category.
