MCCIA Announces State-Wide Protest Against UPI Charges

As part of the protest, traders will observe ‘Gandhigiri’ on October 2, Gandhi Jayanti, by refusing digital payments and conducting transactions only in cash. They will also wear black bands and cover their UPI QR codes with messages reading “NO UPI DAY” to register their protest.

MCCIA president Ravindra Mangave said additional charges on digital transactions could increase the financial burden on small and medium-sized businesses.

The chamber’s opposition comes weeks after the National Payments Corporation of India (NPCI) notified a 0.4 per cent Merchant Discount Rate (MDR) on person-to-merchant (P2M) UPI transactions above Rs 2,000, effective October 15, capped at Rs 300 per transaction. The MCCIA has demanded that the MDR be withdrawn.

Mangave said the traders were not opposed to UPI payments but were seeking the withdrawal of the MDR, which, he said, would ultimately affect consumers.

“We are not opposed to UPI payments; however, we strongly oppose the newly imposed 0.4 per cent MDR on UPI transactions. Any decision that puts a further burden on traders’ profits will not be accepted,” he said.

The Central government has said most UPI transactions will not be affected and that concessions for small traders will remain intact. However, Mangave said the transaction patterns of a large number of small traders and vendors in Maharashtra also needed to be taken into consideration. “Due to competition from online companies, small traders are already forced to operate on very thin profit margins. Under such circumstances, the additional cost on UPI transactions will further impact their profitability,” he said.

Meanwhile, petrol pump operators across Maharashtra have urged the Central government to exempt fuel purchases from MDR and other digital payment charges, saying such fees would directly reduce their already fixed earnings.

Speaking to this newspaper, Mangave said that if the government did not withdraw the MDR, traders would be forced either to pass on the additional cost to consumers or switch to cash transactions.

“Ultimately, the prices of commodities will increase. The traders will wear black bands on October 2 and cover the UPI QR codes with black cloth. They will protest across the state,” Mangave said.

Around 500 organisations affiliated with the MCCIA are also expected to join the protest.