Mobile retailers plan Oct 2 ‘No UPI Day’ protest over proposed MDR charges

AIMRA says a proposed 0.4% MDR on merchant UPI transactions above Rs 2,000, due to take effect October 15, could materially erode small mobile retailers’ margins and add an estimated Rs 500 crore annual burden across the trade.

— Source publishedSun, 27 Sept, 2026, 17:10 IST·First seen Sun, 27 Sept, 2026, 17:22 IST·Source YourStory

What happened

All India Mobile Retailers Association (AIMRA) · Mobile retailers across India, led by AIMRA, plan a No UPI Day protest on October 2 against a 0.4% MDR on

Key facts

  • 0.4% MDR on eligible merchant UPI transactions
  • Rs 2,000 transaction threshold
  • Rs 2,000-Rs 12,000 estimated monthly loss per retailer
  • Approximately Rs 40 crore monthly burden
  • Nearly Rs 500 crore annual burden

What changed

Mobile retailers across India, led by AIMRA, plan a No UPI Day protest on October 2 against a 0.4% MDR on merchant UPI payments above Rs 2,000, warning of material profit erosion for small retailers.

Why this matters

The planned nationwide protest highlights material policy and margin risk for mobile-phone retailers, with AIMRA estimating a Rs 500 crore annual trade-wide burden if the charge proceeds.

What to watch

  • Formal notification from the finance ministry, RBI, NPCI or payment networks confirming whether the 0.4% MDR applies, its threshold and exemptions.
  • Whether the October 2 protest gains participation beyond mobile retailers, especially from electronics, jewellery and other high-ticket merchant categories.
  • Statements from major acquiring banks, payment aggregators and UPI apps on merchant pricing and surcharge enforcement.
  • Evidence of merchant steering: cash discounts, UPI fee notices, reduced QR acceptance, or rising card/EMI share in handset purchases.
  • Any extension or redesign of government incentives for low-value UPI transactions or merchant acquisition.

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