In light of the introduction of the Merchant Discount Rate (MDR) commission for UPI payments exceeding 2000 rupees, starting October 15, a protest has arisen from leading trade and business organizations in Delhi and across the country—the Confederation of Indian Industry (CTI).
The Chairman of CTI, Brijnesh Goel, sent a letter to the Union Finance Minister Nirmala Sitharaman, demanding the cancellation of this MDR commission.
According to the CTI Chairman's letter, there is significant dissatisfaction among traders in Delhi and nationwide regarding the MDR for UPI. Proponents argue that this will create problems not only for shop owners but also for ordinary citizens during the festive season.
CTI General Secretary, Gurmit Arora, and Ramesh Ahuja noted that during festivals such as Navratri, Ramlila, Karva Chauth, Diwali, Chhath Puja, Christmas, and New Year, millions of people visit markets for shopping, with a large portion of these transactions conducted via UPI. They warned that if sellers refuse to accept UPI payments over 2000 rupees, it will cause serious difficulties for consumers.
In his address to Finance Minister Nirmala Sitharaman, CTI Chairman Brijnesh Goel stated the strong indignation among traders regarding the government's decision to levy a 0.40% MDR on UPI payments exceeding 2000 rupees, which is set to take effect on October 15. This outrage is widespread among sellers across the country, including Delhi.
He emphasized that especially small traders, who are already struggling with inflation and downturns, will not be able to bear the additional financial burden.
The CTI Chairman further wrote in his letter that if the government implements the MDR commission from October 15, traders and shop owners in Delhi will be forced to consider completely abandoning UPI payments. They would have to display 'Cash Only' signs, which would contradict the goals of 'Digital India.'
CTI cited survey results, asserting that the introduction of MDR could lead to a sharp 50% decline in UPI transactions. Consequently, both customers and sellers would revert to using cash, which they believe would contribute to the growth of the black market.
Mentioning major holidays over the next three months, the organization stated that the imposition of charges on UPI would effectively destroy the festive trading season. In the letter, the organization demanded that the government review these issues and immediately cancel MDR for UPI, or postpone it until January 1, 2027. A request was also made for the permanent exemption of all small traders with an annual turnover of up to 40 million rupees from paying MDR.
