Trader organisations have withdrawn their planned “No UPI Day” protest on October 2 after representatives met Union Finance Minister Nirmala Sitharaman on Wednesday, September 30, 2026 to discuss concerns surrounding the proposed Merchant Discount Rate (MDR) on certain UPI transactions.
BJP MP and Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said representatives had expressed their concerns to the Finance Minister during the meeting.
Sitharaman assured the delegation that the issues raised would be carefully addressed, Khandelwal said. After the discussion, the All India Consumer Products Distributors Federation (AICPDF) and the All India Mobile Retailers Association (AMRA) withdrew their call for the October 2 protest.
Why was No UPI Day Planned?
Several trade bodies had earlier announced the protest, as concerns about the proposed 0.4% MDR on specified person-to-merchant UPI transactions above ₹2,000.
The proposed framework is due to take effect on October 15, 2026. Business groups had said the extra cost would have to be passed on to retailers and distributors that were already operating with thin margins.
AICPDF and other associations had earlier backed the October 2 protest, and plans to cover UPI QR codes, scanners and sound boxes with black cloth as a symbolic demonstration.
What is MDR on UPI?
MDR (Merchant Discount Rate) is a fee associated with certain digital payments made to merchants.
Under the new framework, the government has stated that MDR will only be applicable to certain merchant transactions above ₹2,000.
The Finance Ministry also made clear that person-to-person UPI transactions will remain free. Payments to merchants up to ₹2,000 and transactions covered under the zero-MDR framework for small merchants will also be free.
According to the government's figures, almost 96% of all person-to-merchant UPI transactions will remain unaffected.
#WATCH | Delhi: On meeting Union Finance Minister Nirmala Sitharaman on UPI, BJP MP Praveen Khandelwal says, "...members of the delegation—specifically the All India Mobile Retailers Association (AMRA), the All India Consumer Products Distributors Federation (AICPDF), and the All… pic.twitter.com/nrAtnc9Rwf
— ANI (@ANI) September 30, 2026
Trade Groups Agree to further dialogue.
Khandelwal said the organisations would continue talks with the government to strengthen the digital payment ecosystem.
He added that mobile payments will be made more responsible and the system strengthened to the best of his ability and cyber threats would be addressed.
The decision to withdraw the protest therefore shifts the immediate focus from a nationwide symbolic demonstration on October 2 to further discussions between trade bodies and the government.
What happened?
The delegation met with the Finance Minister Nirmala Sitharaman on September 30, 2026. After the meeting, the call of no UPI day on October 2 was withdrawn.
The MDR framework will be introduced on October 15, 2026.
