Traders across Madhya Pradesh are preparing to observe a “No UPI Day” on September 23, protesting against the proposed Merchant Discount Rate, or MDR, on certain high-value UPI transactions.
The protest is particularly strong in Indore, where more than 125 trade associations representing around two lakh traders have backed the campaign. Traders in Bhopal and other parts of the state are also raising objections to the proposed changes. :contentReference[oaicite:0]{index=0}
Why Are Traders Protesting?
The central issue is the proposed 0.4% MDR on eligible person-to-merchant UPI transactions above Rs 2,000, which is scheduled to take effect from October 15, 2026.
Payments up to Rs 2,000 will remain free under the new framework. Person-to-person UPI transactions will also remain outside the MDR framework.
The charge is a merchant-side cost rather than a fee directly imposed on customers for making UPI payments. :contentReference[oaicite:1]{index=1}
Indore Traders Plan To Shut UPI For A Day
In Indore, participating businesses have been asked not to accept UPI payments on September 23.
Several traders are also planning to cover their QR scanners and payment devices with black cloth as a symbolic protest.
The campaign is being supported by more than 125 trade associations, covering markets dealing in garments, groceries, jewellery, grains, plywood and other goods. :contentReference[oaicite:2]{index=2}
Bhopal Traders Also Raise Concerns
The protest is not limited to Indore.
The Bhopal Chamber of Commerce and Industry has opposed the proposed MDR and plans to submit representations to the state and central governments.
Traders argue that businesses operating on thin margins could face additional costs when customers make larger digital payments.
Some wholesale, jewellery and automobile businesses say a substantial portion of their transactions exceed the Rs 2,000 threshold. :contentReference[oaicite:3]{index=3}
Government Says Most UPI Transactions Will Be Unaffected
The proposed changes will not apply to every UPI payment.
The Centre has said that around 96% of merchant UPI transactions will remain unaffected. Payments between individuals will also continue without MDR.
This means the proposed charges are primarily focused on specified higher-value person-to-merchant transactions rather than UPI payments as a whole. :contentReference[oaicite:4]{index=4}
Petrol Pumps Also Plan Restrictions
Petrol dealers in Madhya Pradesh have separately raised concerns about the proposed charges.
Petrol pump operators have indicated that they may stop accepting UPI payments above Rs 2,000 from October 15, when the new framework is scheduled to take effect.
Fuel transactions above the threshold are subject to a separate MDR structure under the proposed framework. :contentReference[oaicite:5]{index=5}
Traders Say UPI Is Not The Problem
Trade associations have stressed that their protest is against the proposed merchant charge rather than UPI itself.
UPI has become a major payment method for businesses and consumers, and traders say they have invested in digital payment infrastructure and encouraged customers to use cashless transactions.
Their concern is that introducing a cost for accepting certain larger payments could increase the operating burden for businesses.
What Happens After September 23?
The September 23 protest is a one-day campaign rather than a shutdown of UPI ordered by authorities.
Trade bodies are expected to continue discussions and submit representations before the new MDR framework takes effect on October 15.
The actual impact on merchants and customers will become clearer once the new system is implemented and businesses adjust their payment practices.
Summary
Traders across Madhya Pradesh, particularly in Indore, are preparing for a September 23 “No UPI Day” to protest the proposed 0.4% MDR on certain UPI merchant payments above Rs 2,000. More than 125 Indore trade associations are backing the campaign. Bhopal traders and petrol dealers have also raised concerns, while the government says most UPI transactions will remain unaffected.
