Maharashtra traders plan October 2 ‘No UPI Day’ over proposed MDR fee
Trader bodies in Maharashtra are calling for cash-only transactions on October 2, protesting a proposed 0.4% charge on UPI payments above ₹2,000. The action follows similar merchant protests in Madhya Pradesh and could temporarily disrupt digital-payment acceptance at participating stores.
What happened
Maharashtra traders plan a cash-only No UPI Day on October 2 to protest a proposed 0.4% fee on UPI payments above ₹2,000. The action follows similar protests in Madhya Pradesh, with traders seeking withdrawal of MDR charges.
Key facts
- 0.4% fee on UPI transactions above ₹2,000
- 20,000 traders
- October 2
- September 28-30, 2026
- October 15
- ₹2,000 UPI transactions remain MDR-free
Why this matters
The MDR backlash highlights an opportunity for acquirers and fintechs to deepen merchant partnerships with pricing models that protect small-ticket digital-payment economics.
What to watch
- Formal government, NPCI, RBI, or finance-ministry clarification on whether a 0.4% MDR proposal exists, its scope, and implementation timetable.
- Participation estimates and geographic spread of the October 2 action, especially adoption by Mumbai, Pune, Nagpur, and organized retail associations.
- Whether trader groups in additional states announce aligned cash-only days or indefinite UPI boycotts.
- UPI transaction-value and transaction-count deviations around the protest date, alongside ATM withdrawals and cash demand.
- Any exemption threshold changes, merchant subsidy announcements, or commitment to fund UPI operating costs without MDR.
- Public statements from banks, payment aggregators, QR providers, and major retail chains on fee pass-through or acceptance policy.
- Retailers should prepare a cash-handling contingency for October 2: float sizing, change availability, cashier guidance, and security coverage.
- Payment teams should map exposure by store, merchant category, transaction size, and UPI dependency; prioritize continuity plans for locations likely to participate.
- Acquirers and fintechs should proactively communicate whether proposed charges would apply, who bears them, and whether merchant-specific exemptions or threshold rules are possible.
- Large chains should avoid abrupt UPI refusal, but prepare clear customer messaging and alternate tender routing if local merchant associations call for participation.
- Monitor whether informal customer surcharges or cash-only policies create consumer-protection, tax-compliance, or brand-risk issues.