Trader associations across India have called off their planned 'No UPI Day' protest, initially scheduled for October 2. The decision came after a delegation of business leaders met with Finance Minister Nirmala Sitharaman on Wednesday, September 30, 2026, to address their concerns regarding the proposed Merchant Discount Rate (MDR) on UPI transactions.
The proposed 0.4% fee on merchant payments exceeding Rs 2,000 is still slated to be implemented from October 15. The trading community had voiced strong opposition, fearing the new charge would negatively impact small and medium businesses and deter the adoption of digital payments.
Concerns Raised by Traders
The delegation, comprising approximately 20 senior business leaders and led by Confederation of All India Traders (CAIT) National General Secretary P Khandelwal, engaged in what they described as “constructive discussions” with the Finance Minister. Khandelwal, who is also a Member of Parliament from Chandni Chowk, stated that the withdrawal of the protest was based on assurances that the government would duly consider their concerns.
- Deferment of MDR: Traders urged the government to defer the proposed MDR, citing the upcoming festive season and anticipated increase in business activity.
- Threshold Review: They sought a review of the Rs 1 lakh threshold under the proposed framework, suggesting it be raised significantly to Rs 5 lakh.
- Exclusion of Merchant-to-Merchant Transactions: The associations also called for merchant-to-merchant transactions to be exempt from the MDR framework.
- Special Committee: A request was made for the formation of a special committee to thoroughly examine their concerns and recommend a viable path forward.
Government's Stance and Commitment
During the meeting, the delegation emphasized the importance of maintaining the momentum of digital payments without imposing additional financial burdens on merchants. Finance Minister Sitharaman assured the representatives that the government remains steadfast in its commitment to promoting digital transactions while simultaneously safeguarding the interests of all stakeholders.
CAIT reiterated its full support for the success of digital payments and UPI. The traders' body stated that its objective is to ensure that policies designed to strengthen the digital payment system remain practical and balanced for traders, MSMEs (Micro, Small, and Medium Enterprises), and the broader digital business ecosystem.