AIMRA announces nationwide 'No UPI Day' on October 2 to protest against proposed MDR for UPI transactions

The All India Mobile Retailers Association (AIMRA) has called for a nationwide 'No UPI Day' on October 2 to protest against the proposed Merchant Discount Rate (MDR) for UPI transactions above Rs 2,000. The retailers’ body said that the proposed charge may increase the cost burden on small businesses and impact their profit margins.

To mark the protest, retailers nationwide will have UPI QR codes hidden under black cloth, AIMRA added in a statement.

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The association said that micro, small and medium enterprises, shopkeepers and independent retailers are on a narrow profit margin and rely on digital payments to do their daily business. It further added that imposing charges on "routine" digital payments might make it more expensive for merchants.

AIMRA said retailers support the wider adoption of digital payments but want policymakers, financial institutions and the National Payments Corporation of India (NPCI) to reconsider the proposed MDR.

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The association said that the October 2 protest is intended to bring attention to the concerns over transaction charges and seek measures to keep digital payments accessible to small businesses.

AIMRA demanded the proposed 0.4% MDR be reconsidered and withdrawn, stating that it was “One Nation, One Trade Fraternity, One Voice”.