Mobile retailers call Oct 2 ‘No UPI Day’ over proposed 0.4% MDR
AIMRA plans a nationwide protest against a proposed 0.4% merchant discount rate on UPI transactions above ₹2,000, saying the charge could materially erode mobile retailers’ margins from October 15.
What happened
All India Mobile Retailers Association (AIMRA) · AIMRA has called a nationwide No UPI Day on October 2 to protest a 0.4% MDR on merchant UPI payments above
Key facts
- 0.4% MDR on eligible merchant UPI transactions above ₹2,000
- October 2, 2026 No UPI Day
- MDR effective October 15
- ₹2,000-₹12,000 estimated monthly loss for retailers processing ₹5 lakh-₹30 lakh monthly via UPI
- ₹40 crore monthly and nearly ₹500 crore annual estimated burden
What changed
AIMRA has called a nationwide No UPI Day on October 2 to protest a 0.4% MDR on merchant UPI payments above ₹2,000, warning of significant income erosion and urging the government to retain zero MDR.
Why this matters
Mobile retailers should prepare for potential UPI acceptance costs above ₹2,000 by reviewing payment mix, pricing, and merchant negotiations ahead of the proposed October 15 MDR change.
What to watch
- Formal NPCI, RBI, finance ministry or banking-industry notification specifying whether the 0.4% MDR is proposed, approved, deferred or limited to particular merchant categories.
- Clarification on who bears the charge: merchant, acquiring bank, issuer, app provider or government subsidy mechanism.
- Any exemption threshold, annual turnover carve-out, cap on MDR, GST treatment or special rule for small retailers.
- Merchant UPI transaction volumes above ₹2,000 and evidence of migration to cards, EMIs, cash or bank transfers after October 15.
- Whether major handset brands or large retail chains announce payment-mode-specific discounts or dealer compensation.