NO UPI DAY Protest Called Off: AIMRA UPI Strike Withdrawn After Finance Minister Talks
NEW DELHI: The All India Mobile Retailers Association (AIMRA) and the All India Consumer Products Distributors Federation (AICPDF) have withdrawn their planned NO UPI DAY protest scheduled for October 2, after representatives met Union Finance Minister Nirmala Sitharaman to discuss concerns over the proposed Merchant Discount Rate (MDR) on certain UPI payments.
The AIMRA UPI strike had been announced as a nationwide symbolic protest, with mobile retailers planning to stop accepting UPI payments and cover QR codes and payment devices with black cloth. The associations withdrew the call after the September 30 meeting with the finance minister. Business Standard reported that the organisations sought changes to the proposed MDR framework.
Why The No UPI Day Protest Was Planned
The Merchant Discount Rate India debate centres on the proposed 0.40% MDR for specified person-to-merchant UPI transactions above ₹2,000. The new structure is scheduled to take effect from October 15.
Under the proposed Merchant Discount Rate India framework, peer-to-peer UPI payments would remain free. Payments involving small vendors in the P2PM category would also remain outside the MDR charge, with the proposed threshold set at ₹1 lakh in monthly UPI receipts.
AIMRA had argued that the proposed charge could increase costs for mobile retailers operating on relatively small margins. The AIMRA UPI strike was initially presented as a way to press the government to reconsider the proposed fee before its scheduled implementation.
Trade Bodies Seek Changes To MDR Rules
During the meeting, the trade delegation sought deferment of the proposed MDR until after the festive season. Representatives also asked for the ₹1 lakh threshold to be raised to ₹5 lakh and requested that merchant-to-merchant transactions be excluded from the framework.
The delegation further proposed introducing MDR gradually rather than applying the full 0.40% rate immediately. The associations said the finance minister heard their concerns and indicated that the issues raised would receive consideration.
The withdrawal means the NO UPI DAY protest will not proceed as originally announced on October 2. Consumers therefore should not treat October 2 as a nationwide suspension of UPI services. Existing UPI and online banking facilities continue to operate, subject to normal bank or payment-service availability.
What Happens To The UPI MDR Proposal Now?
The cancellation of the NO UPI DAY protest does not by itself cancel the proposed MDR framework. The scheduled October 15 implementation remains the key date while discussions over the trade bodies’ demands continue.
The Merchant Discount Rate India framework will affect only specified merchant transactions rather than all UPI payments. Peer-to-peer transactions remain outside the charge, while the proposed MDR on eligible person-to-merchant payments above ₹2,000 is capped at ₹300 per transaction.
For retailers, the immediate protest has ended, but the policy dispute remains unresolved. The AIMRA UPI strike has shifted from a planned one-day payment boycott to continued discussions over the cost structure that merchants will face once the new MDR regime takes effect.
