Traders in Indore observed ‘No UPI Day’ to protest the proposed 0.4 per cent MDR on UPI transactions above Rs 2,000, warning that the cost could ultimately be passed on to consumers.

Indore: Traders in Indore observed a symbolic ‘No UPI Day’ on Wednesday to protest against the proposed imposition of a 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000. Several shopkeepers put up stickers outside their establishments as part of the protest.

The traders said the proposed charges would ultimately increase costs for consumers and contribute to inflation. They demanded that the decision be reconsidered, warning that they may return to cash transactions if the charges are implemented.

Akshay Jain, president of the Indore Retail Garment Association and joint secretary of the Ahilya Chamber of Commerce and Industry, said the protest was supported by around 125 trader organisations.

“Today, we are holding a symbolic protest. The Ahilya Chamber of Commerce has announced ‘No UPI Day’. Around 125 trade organisations have supported the call, and all of them are conducting cash transactions today. The purpose of the protest was to draw the government’s attention to the concerns of traders,” Jain said.

He said any surcharge would add to costs and could contribute to inflation.

“A merchant does not create money. A merchant sells goods, and any increase in the cost of goods will ultimately be passed on to the customer,” Jain said.

Recalling the shift towards digital payments after 2016, Jain said traders had adopted digital transactions following the government’s push for a digital economy.

“We supported the government and adopted digital payments. In 10 years, we have brought 85 per cent of our business onto digital payments. After we have shifted to digital payments, the government should not break the system that was created with our support,” he said.

Jain urged the government to reconsider the proposed charge, saying it could drive up prices. He added that traders would continue accepting UPI payments until October 15 but may return to cash transactions thereafter if the proposed charges are implemented.

Another trader, Hemant Doshi, who runs a ready-made garment store in Indore, said traders were opposing the proposed charge on transactions above Rs 2,000 because they believed the cost would eventually be passed on to customers.

“We are observing ‘No UPI Day’ today. We are opposing the charge that the government has proposed on transactions above Rs 2,000 because its direct impact will be on the customer. We cannot pay it from our own pockets, so we will have to recover it from customers by increasing our prices,” Doshi said.

Doshi said traders were accepting only cash transactions as part of Wednesday’s protest. He added that if the proposed MDR is not withdrawn, traders would accept UPI payments only for transactions below Rs 2,000.

“Today, we will not take even a single rupee through UPI. If this MDR is not withdrawn, then we will not accept payments above Rs 2,000 through UPI. Payments above Rs 2,000 will be accepted in cash, while payments below Rs 2,000 will be accepted through UPI,” Doshi said.


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