Indian retailers plan ‘No UPI Day’ protest on October 2 against 0.4% MDR
Indian mobile and FMCG retailer groups have called for a nationwide ‘No UPI Day’ protest on October 2 to oppose the proposed 0.4% merchant discount rate. AIMRA and AICPDF said their networks of roughly 4.5 lakh distributors and 1.3 crore retailers will join the protest.
The finance ministry’s new framework introduces a 0.4% MDR on specified person‑to‑merchant UPI transactions above ₹2,000, capped at ₹300 for payments of ₹75,000 or more. It is scheduled to take effect from October 15, shifting from the zero‑MDR regime that has applied to UPI since January 2020. AICPDF estimates the change could add an annual cost burden of ₹7,000 crore to ₹9,000 crore across the FMCG distribution and retail ecosystem.
“We are not against UPI or digital payments. UPI has become an important part of India's business ecosystem, and our trade has embraced it extensively. Our concern is the cumulative economic impact of MDR on a distribution system that operates on very thin margins,” Dhairyashil H. Patil' said.
Earlier this month the finance ministry introduced a framework that permits a 0.4% MDR on specified person‑to‑merchant UPI transactions above ₹2,000, capped at ₹300 for payments of ₹75,000 or more. The framework is set to take effect from October 15, ending the zero‑MDR regime that has been in place since January 2020.
What we know
Protest scheduled for October 2
AICPDF network comprises around 4.5 lakh distributors and 1.3 crore retailers participating in the protest
Proposed MDR rate is 0.4%
MDR framework set to take effect from October 15
Estimated additional annual cost burden of ₹7,000 Cr to ₹9,000 Cr