Traders plan ‘No UPI Day’ on Oct 2 against proposed MDR on payments above ₹2,000
Delhi’s CTI has called for a nationwide protest, saying proposed MDR on UPI merchant payments above ₹2,000 from Oct 15 could pressure low-margin retailers and push larger transactions back to cash.
What happened
Delhi-based CTI has called for a nationwide No UPI Day on 2 October to oppose proposed MDR on UPI merchant payments above ₹2,000 from 15 October. Traders say
Key facts
- MDR proposed on UPI payments above ₹2,000 from 15 October 2026
- 2 October 2026: CTI's planned 'No UPI Day'
- About 6 crore shopkeepers, traders and entrepreneurs could be affected
- FY2025-26 UPI transactions: 24,162 crore
- FY2025-26 UPI transaction value: about ₹314 lakh crore
- UPI share of digital transactions: about 84%
- Merchant P2M UPI receipts: about ₹198 lakh crore
- Transactions above ₹2,000: 4% by volume, about ₹131 lakh crore or 66% of merchant-payment value
- Illustrative MDR: ₹12 on ₹3,000 and ₹200 on ₹50,000 payments
- Maximum MDR cap: ₹300
- CTI estimates up to 50% decline in UPI payments above ₹2,000
Why this matters
The proposed pricing shift could accelerate partnerships or acquisitions in payment orchestration, merchant-finance, and low-cost acceptance technology as retailers seek alternatives to higher UPI acceptance costs.
What to watch
- Formal government, NPCI, RBI, or finance ministry notification specifying MDR rate, threshold, merchant categories, and effective date.
- Oct. 2 protest participation, geographic breadth, and support from national retail and trade bodies.
- Payment aggregator and bank advisories on merchant pricing, surcharge rules, and settlement changes.
- UPI transaction-value trends above ₹2,000 versus cash and card volumes after any announcement.
- Retailer announcements of payment restrictions, minimum purchase thresholds, or discounts for alternate payment methods.
- Political response to claims that MDR could weaken digital-payment adoption or burden small merchants.
- Model payment-cost exposure by average ticket size, UPI mix, merchant discount rate, and category margin.
- Prepare consumer-facing payment-routing guidance and cashier scripts that avoid abrupt refusal of UPI.
- Engage merchant associations, payment aggregators, and banks on exemptions, tiered pricing, caps, and settlement incentives.
- Review contracts with payment providers for MDR pass-through clauses and renegotiation options.
- Track whether competitors begin promoting cash, cards, bank transfer, or closed-loop payment alternatives for high-value baskets.