Traders in Madhya Pradesh cover QR codes with black cloth protesting MDR on UPI

Traders across Madhya Pradesh observed a ‘No UPI Day’ on Wednesday to protest the Union Government’s decision to impose a 0.4 per cent fee on UPI transactions over Rs 2,000 by covering the QR codes at their shops with black cloth.

The protesters appealed to their customers to make payments in cash.

Ramesh Khandelwal, president of the Ahilya Chamber of Commerce and Industry, a federation of trade organisations, claimed that their members in Indore, Bhopal, Jabalpur, Gwalior, Ratlam, Neemuch, Mandsaur, and Jaora participated in the ‘No UPI Day’ campaign. According to the central Government, a merchant discount rate (MDR) of 0.4 per cent will be levied on person-to-merchant transactions above Rs 2,000 from October 15. However, no MDR is to be levied on UPI transactions up to Rs 2,000.

Khandelwal said, “Traders are not against the Government, but their question is, if the money collected from MDR is not going to the Government treasury, why is this additional burden being placed on traders?” According to Khandelwal, who represents Madhya Pradesh on the National Traders Welfare Board, a central Government advisory body, nearly 125 business organisations in Indore, the State’s financial capital, participated in the ‘No UPI Day’ campaign.

Citing the broader interests of traders and consumers, Akshay Jain, president of the Indore Retail Garments Association, said the Centre should immediately withdraw the decision to impose a 0.4 per cent MDR on UPI transactions exceeding Rs 2,000.

If this decision is not withdrawn before October 15, traders will “immerse UPI QR code machines” in water bodies, he said.

The Government has clarified that customers will not be charged any additional amount due to the changes to the UPI (Unified Payments Interface) system, which remained completely fee-free for nearly six years. “Customers will not have to pay any fee for making such payments through UPI,” the Finance Ministry had said.