UPI No MDR Day is being planned by mobile phone retailers across India on October 2, 2026, to protest the proposed 0.4 percent Merchant Discount Rate (MDR) on certain UPI transactions.
The All India Mobile Retailers Association (AIMRA) has called for retailers to avoid accepting UPI payments on the day.
According to AIMRA Vice President and Delhi-NCR President Tarvinder Singh, retailers will symbolically cover their UPI QR codes with black cloth on Gandhi Jayanti and stop accepting UPI payments as part of the protest.
UPI No MDR Day on October 2
AIMRA said the protest is aimed at highlighting mobile retailers’ concerns about the 0.4 percent MDR that businesses will have to pay on eligible UPI transactions above ₹2,000 from October 15.
The proposed charge will not apply to person-to-person (P2P) UPI transactions and small payments, according to the details shared by the association.
Retailers participating in the protest are expected to avoid accepting UPI payments for the day. The association said the symbolic action is intended to draw attention to the additional cost faced by merchants.
Retailers Estimate ₹40 Crore Monthly Burden
In a memorandum sent to Finance Minister Nirmala Sitharaman, AIMRA said the proposed MDR could result in a net loss of around ₹2,000 to ₹12,000 per month for small retailers processing between ₹5 lakh and ₹30 lakh through UPI each month.
The association estimates that the 0.4 percent MDR could create a financial burden of around ₹40 crore per month for small mobile retailers across the country. It has put the estimated annual burden at around ₹500 crore.
AIMRA said the additional cost could affect a significant portion of the net income of small retailers, particularly those with high volumes of digital transactions.
Retailers Want Zero MDR on UPI
The association said its protest is not against UPI or digital payments. Its main concern is the financial impact of introducing MDR on merchants accepting eligible UPI transactions.
Tarvinder Singh said the association wants UPI payments to continue under a zero-MDR framework. AIMRA said keeping MDR at zero would support the continued use of digital payments while avoiding an additional cost for merchants.
The proposed October 15 charge and the October 2 protest are separate developments, with the association using the earlier date to highlight its concerns before the new MDR is scheduled to apply.
